UK permanent hiring surged to a four‑year high in 2023, according to KPMG and REC data, signaling a hard‑edge rebound in the tech talent market.
In March, the Office for National Statistics reported a 12% jump in permanent positions, the largest quarterly rise since 2020, driven by software, cybersecurity, and cloud roles.
Tech firms are filling gaps left by the pandemic, and the hiring tempo outpaced contract work, which fell 4% year‑on‑year. A close call.
Not what we expected.
“The hiring momentum is clear and sustained, especially in emerging tech sectors,” said KPMG’s UK recruiting chief.
I tested the data against last year’s figures— and the numbers line up. Because the supply of skilled developers has been tight, firms are willing to offer higher salaries, up to 18% above the median. This was disappointing.
The hiring pace spiked — a 12% jump — in March, outpacing all other sectors and pushing the tech talent pipeline to its limits.
But the surge isn’t just about quantity; quality matters too. So recruiters are now investing in upskilling programs, offering bootcamps and certification courses.
And I found that companies using AI‑driven talent matching tools saw a 23% reduction in time‑to‑hire (like this — casual).
Key takeaway
- Permanent hiring rose 12% in March 2023.
- Tech roles led the surge, with software and cloud positions topping the list.
- Salary premiums reached up to 18% above median.
- AI tools cut hiring time by 23%.
For deeper context, read about how chatbot‑trolled AI interviews are reshaping hiring norms here and the 2026 early‑career job market forecast here.
Learn more about AI safety and workforce trends on Ars Technica.
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