The technology sector thrives on energy from deal flow. Stability and potential reductions of interest rates may fuel a recovery through 2024 after a softening of numbers and valuations in the last 18 months.

The key challenge and priority for the industry is workflow. 2022 and 2023 were marked by layoffs of between 5%-25%. Economic stability, access to capital and uptake in deal-flow may bolster confidence around recruitment. However, it is not expected that we will continue to see the unsustainable salaries across the workforce we have seen since 2021. Whilst UK skilled technology migration rose to its highest levels in 2022, many companies will continue to explore globally mobile workforces as they look for the right skills in a more cost-effective way.

The UK technology sector adds over £150bn to the UK economy every year and employs over 1.7 million people and continues to be Europe’s leading ecosystem. We discuss in more detail the challenges and opportunities the sector is facing in our 2024 media and technology industry outlook.