There is a lot of uncertainty in the world that could impact the UK tech jobs market. The point that immediately comes to mind is the devastating situation in Ukraine. Additionally, other world events may add to a job seeker’s nervousness, such as rising inflation and the energy crisis. We explore how these situations might impact the availability of jobs and job security in the UK marketing and technology sectors.
How the Russia-Ukraine Conflict is Impacting Technology Jobs
Ukraine is a chief global delivery location for engineering and IT R&D services. As a consequence of the war, there are significant concerns and widespread uncertainty for businesses in this area.
Many companies outsource their IT and digital engineering requirements to highly skilled professionals from Russia, Belarus, Ukraine, and neighbouring countries. Since the Russian invasion on the 24th of February, many tech professionals have either fled to neighbouring countries or stayed to fight.
It goes without saying that this is a horrendous situation for everyone caught up in the conflict and our thoughts are with those affected by the tragic events that unfold daily. But as sad as the circumstances are, these technology and marketing jobs will need to relocate to a safe haven. Therefore, we could see job opportunities in these sectors become available in the UK.
How the Energy Crisis is Impacting the Tech Jobs Market
There is also concern that rapidly rising energy costs could cause a job crisis in the UK across several industries.
While a cap on energy bills has protected household energy customers, costs are soaring for enterprises. This means many companies face enormous bills due to rising gas prices, which has rocketed by over 250 per cent this year alone. Those businesses that rely heavily on energy will naturally be the hardest hit.
Kwais Karteng, the UK Business Secretary, recently held talks with industry leaders, and there are ongoing discussions about what the government can do to help. Until they reach a decision, it is unclear how this might affect jobs in the digital sector.
How Might Rising Inflation Impact the Tech Jobs Market?
This year, inflation rose to its highest rate since 1992. The increasing fuel costs and energy prices are largely to blame for driving up inflation. However, the bank of England boss made a plea to workers not to request pay rises to cover the rising price of drinks, food, and other everyday essentials.
This rise in inflation occurs while there is an acute worldwide talent shortage, which has long been driving up the price of tech talent. So while prices may be increasing at an alarming rate, it is doubtful that this will negatively impact the number of tech jobs available.
As inflation rises, businesses may well look for areas in which to cut costs. That said, employers in the digital sector may need to prepare to increase salaries further. As the availability of cheap labour dries up in Ukraine, this may drive up wage bills further still.
A Few Final Thoughts on Whether Now is a Good Time to Look for Jobs
So there you have it: an insight into the current job market in the UK and how events around the world are impacting it.
Of course, nobody can really tell what the future holds for the UK jobs market. However, we can tell you that according to APSCo, in the first quarter of 2022, 52% of employers intend to hire and 31% plan to keep employee levels steady.
From our point of view, we can see that there are many more jobs available than there are skilled workers to fill them. The availability of tech jobs combined with rising salaries makes this an excellent time for job hunters in the digital sector. If you’re considering your next career move, our team of experienced recruitment consultants would be happy to help you.