UK Jobs Market Splitting into Two Speeds as Software Development Defies Expectations

The UK jobs market is experiencing an unusual trend, according to recent data from Indeed. While overall job postings have declined by around 10% compared to January 2025, some sectors are bucking this trend.

Software development vacancies, in particular, have risen by 14%, but only for senior and AI-linked positions. This is a reversal of what many had predicted: software development was expected to be heavily impacted by code-generating models, leading to job losses.

However, instead of being hollowed out, the profession is now hiring again, but only at the top end. Jack Kennedy, a senior economist at Indeed, notes that this has created a 'two-speed' market, where demand for experienced staff and AI-related jobs is high, while other areas are struggling.

The decline in job postings is particularly pronounced in sectors such as manufacturing (down 58% from June 2022), retail, white-collar functions like accounting and marketing, construction, warehouse stocking, and equipment maintenance. Youth unemployment has also reached a ten-year high, with the Bank of England's governor attributing it to a 'low hire, low fire' economy.