Hiring Permanent IT Talent: The State Of The Market In May 2026

Since our last permanent IT recruitment market update in May 2025, we have continued to see several shifts reshaping the IT hiring landscape.

Hiring permanent IT talent has adapted in recent years with the rise of AI tools and the inclusion of the “easy apply” option on job boards. There has also been a consistent contraction in certain areas across the tech landscape alongside a rise in candidate availability. Geopolitical issues continue to affect the economy, and there is rising uncertainty about how inflation and interest rates will change with the recent conflict and to what extent this will affect the hiring market.

As we look towards the second half of 2026, there are still some positives for IT professionals. Many projects are beginning to get off the ground post the 2026/27 financial year beginning and opportunities continue to arise, albeit not at the pace of 2022, but particularly in the Data and AI space.

Is the UK’s IT recruitment landscape an employer’s market?

In many cases – particularly for generalist roles – the IT recruitment landscape is an employer’s market. However, there are areas of permanent IT recruitment involving niche and emerging technology skills that are candidate-driven.

The permanent recruitment market is faring much better than in the past 2-3 years, with the latest REC report showing that the rate of contraction in the market is at its slowest since May 2025. However, candidate availability continues to rise. The number of candidates on the market is increasing for several reasons, including fewer opportunities on the market and a small uptick in contractors looking for permanent roles after longer periods of job insecurity.

Nevertheless, in cases where companies seek niche specialists or skills connected with Data and AI, plus other emerging areas of technology, where supply is lower than demand, organisations are finding they must compete to attract the candidates they need.

Has the rise in candidate availability made hiring permanent IT talent easier for businesses?

We have heard some businesses say that because there are so many candidates on the market, hiring managers do not need external recruitment help. They believe they are in a position where because they receive lots of applications directly, they will be able to “easily” pick the best of the bunch.

However, in reality, we have found that many businesses are now finding the recruitment process much more frustrating and challenging due to the number of candidates on the market. In some cases, such as when recruiting for generalist or junior roles, the number of applications can reach into the thousands, and just because more candidates are applying for the role, it does not mean they are suitable.

The rise of AI tools has made it much easier for unsuitable candidates to apply for roles and lie about their skills and experience on their CVs. It has become much more challenging to distinguish which candidates are relevant to the role and which are not.

All of this is placing increased pressure on hiring managers, who, without internal or external talent acquisition help, are responsible for screening, shortlisting, and assessing candidates. This can be a lot of work, especially for individuals who do not typically undertake recruitment tasks as part of their usual job.

In technical and niche roles, those responsible for initial shortlisting may struggle to ask candidates the right questions or be unable to adequately assess technical suitability. This raises the risk of unsuitable candidates progressing further in the recruitment process.

Is the “easy apply” function beneficial to the recruitment process?

Another cause behind the surge in applications is the widespread use of the “easy apply” button across job platforms.

While this has made it significantly easier for great candidates to apply for roles, it has also led to a rise in unsuitable candidates applying. Candidates are now able to apply for multiple roles within minutes, often without fully reading job descriptions or assessing their own suitability. In some cases, only a small percentage of applicants are genuinely relevant for the role.

For organisations that do not have the support of internal or external recruitment teams when hiring permanent IT talent, these functions have made the process much more challenging.

Only 18% of our successful placements come from candidates applying directly, with the majority secured through targeted outreach, established networks, and headhunting. However, many organisations do not have the time or resources to carry this out effectively internally.

How is AI affecting the recruitment market?

Since our last market review, the use of AI has continued to increase in permanent IT recruitment, from both the employer and candidate perspectives.

For companies that are hiring permanent IT talent, many are looking into using AI tools to speed up the process. This includes parsing through CVs, automating responses, and using tools to diarise meetings and interviews. Whilst this can help recruitment processes progress more quickly, there are some concerns about bias in AI tools that could be affecting which candidates are selected.

From a candidate perspective, a major issue we see with the use of AI is the rise in fully AI-generated CVs that do not match the candidate’s experience, as well as candidates using AI tools to assist with applications and even interviews.

As a result, we are finding that some businesses are beginning to adapt their hiring processes. There are some who are considering implementing in-person interviews for the first stage. However, for many organisations and businesses, that can be impractical. Instead, we are increasingly carrying out pre-screening video interviews with approved questions to assess candidates and spot any evidence of AI usage.

AI can be very helpful in many ways; however, more needs to be done to manage the use of AI in recruitment processes.

What tech skills are experiencing high demand?

One area where hiring permanent IT talent is seeing increasing demand from businesses is in Data and AI.

Key Data and AI roles going from strength to strength in the permanent IT recruitment market include:

• AI engineers
• Data engineers
• Software engineers
• AI product managers
• Data consultants

Organisations are increasingly investing in these areas to drive efficiency, automate processes, and unlock greater value from their data. This has led to a steady increase in demand for data professionals, alongside specialists who can develop and implement AI-driven solutions.

Has there been a reduction in junior roles in the IT jobs market?

It is clear that, to some extent, there has been a reduction in junior and entry-level IT roles in the permanent IT market. Just like in many other industries, there is evidence that this is due to AI already reshaping the structure of the workforce.

Many entry-level and administrative tasks, traditionally performed by junior employees, are now being automated. While this creates efficiencies for organisations, it also raises questions around the future talent pipeline.

We are already seeing a reduction in certain junior roles, such as first-line support, as these responsibilities are being taken over by automated systems.

However, it is important to note that while some roles are disappearing, others are being created. The IT job market is continuing to evolve, with new positions emerging that did not exist just a few years ago.

Is salary transparency becoming less common?

Another shift in the permanent IT recruitment market is the reduction in salary transparency.

In some cases, employers report that the reason they do not want to disclose salaries is due to concerns around competitors and internal staff gaining awareness of what they are willing to pay. However, salary transparency is very important to candidates. Around 80% of candidates say they would avoid applying for a job without a salary listed.

When looking into hiring permanent IT talent where a role has specific requirements and candidates need to be identified through outreach campaigns, without being able to attract them with a good salary, it is much harder to interest them in roles.

Do companies still want to return to the office?

There were some concerns a few years ago that, as high-profile businesses were pushing a full 5 days in the office, other companies would follow.

In general, hybrid models remain the most common. However, we are seeing a gradual increase in office attendance requirements. Employees who were previously expected to be in the office one or two days per week are now typically being asked to attend three or four days. These decisions are typically driven by business needs and strategies that encompass collaboration, productivity, and company culture. When hiring permanent IT talent, we see most businesses are more comfortable in recruiting hybrid employees who can easily commute to the office, even if they are rarely onsite.

What we are expecting to see throughout the rest of 2026?

As inflation is expected to continue to rise this year due to ongoing geopolitical challenges, businesses are likely to face continued budget pressures, which may result in more cautious hiring across the sector.

Junior and entry roles within Line Support and Project Management will likely see high competition from other candidates this year. Meanwhile, areas such as Data and AI are expected to remain strong. Overall, the permanent IT talent market in 2026 is expected to remain uneven, with some areas experiencing sustained demand while others continue to face more challenging hiring conditions.

Key takeaways…

Hiring permanent IT talent has evolved significantly over the past few years, driven by the rise of AI, “easy apply” functionality on job boards, and shifting working patterns. Despite AI promising greater efficiency, recruitment remains challenging for many organisations, where personalised internal or external recruitment support can significantly improve outcomes.

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