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Interested in software engineering? The UK retains the European crown

Published on: 25 Jul 2024

The UK’s tech sector has become a magnet for top tech talent, thanks to its proximity to European markets, access to the global talent visa, generous government incubators, and competitive tax rates. 

Interested in software engineering?

According to London & Partners, which is affiliated with the Mayor of London, London currently ranks third in the world for investment, behind only the US and China.

In 2023, investors poured a staggering £19.8bn in venture capital funding into London’s high-growth start-up companies. This momentum is expected to continue, with the market projected to grow at a compound annual growth rate (CAGR) of 7.14% by 2028. The software market alone grew by 6.2% in 2022, generating revenues of £41.3bn.

British tech companies are rapidly expanding to meet customer needs across various sectors, including healthcare, fintech, and education. This growth is creating significant job opportunities, with an estimated 705,000 tech services positions expected in the UK by 2025. The race to close the talent gap is on, promising lucrative prospects for tech workers looking to advance their skills.

The UK government has pledged £3.5bn to tech and science, reinforcing its mission to establish the UK as a scientific and technological superpower. Approximately £1bn of this funding is earmarked for supercomputing and AI research, underscoring their importance to the sector.

Initiatives like the £200 million digital skills fund, announced in November, are driving industry growth and creating opportunities for workers. This funding aims to provide access to higher technical qualifications in in-demand skills such as digital, healthcare, and engineering, offering alternatives to traditional three-year degrees.
Strategic investments in the UK’s future tech workforce are also fostering job creation and nurturing an ecosystem of innovation.

The UK remains a prime location for software engineers, with salaries increasing by 8% year-over-year, according to a recent report on UK software engineering trends. Backend, full stack, and frontend engineers are the most in-demand roles, receiving the majority of interview requests.

Gaming engineers lead the pack in earnings, with an average salary of £92,000, up 18% from 2021. Search engineers are the second highest paid, with salaries rising to £89,000. Security and machine learning engineers tie for third place, earning £87,000, up 14% and 12% from 2021, respectively.

While London remains a central tech hub, cities like Manchester and Birmingham are also actively recruiting talent and offering remote working opportunities.

As the UK tech jobs market continues its rapid growth, the pressure to retain its global status as a tech powerhouse intensifies. Workers with coveted skill sets stand to reap significant rewards in this thriving sector.