Why COVID seemingly less impacts the software development job market

A resilient sector during COVID

Software development and technology firms appeared to be relatively unscathed by job losses compared with industries experiencing the full impact of COVID-related unemployment.

At the time, the UK unemployment rate had risen to 4.5%, its highest level in two years. Despite this, many software and technology businesses were doing more than simply holding their position.

One Manchester-based technology company increased its revenue by 30% as a result of COVID, while another Northern technology firm grew its workforce by 50% during lockdown, with no plans to halt its expansion.

The resilience of technology roles gave software businesses greater confidence during 2020, despite the pandemic and the prospect of a recession.

The sector continued to develop innovative solutions to everyday problems, including new technology-based approaches to recruitment. Indeed, the UK’s largest job site discussed how virtual technology could reinvent the hiring process.

Whether every solution would prove successful was another question, but it provided a further example of innovation originating within the technology sector and influencing other industries.

Why, then, was technology recruitment proving so resilient, and what could other industries learn from it?

A start-up mentality

Many software and web development businesses began as start-ups.

These organisations are often built around ambitious growth plans, innovative problem solving and a willingness to develop new skills when circumstances change.

Although not every technology company began as a start-up, many retain this adaptable culture as they grow.

Technology businesses regularly restructure and evolve to meet the specific demands of new projects. This made them better prepared to respond to significant disruption, including an unexpected global pandemic, without severely affecting output.

Remote and flexible working were already established

Start-up and scale-up businesses often place considerable value on employee wellbeing and work life balance.

Creativity is central to innovation, so many technology companies had already adopted remote and flexible working practices before the pandemic began.

As a result, much of the infrastructure needed to work from home was already in place.

While other sectors were still learning how to operate remotely, many technology businesses were working in familiar territory.

Companies that had not yet fully developed their remote-working infrastructure were also likely to understand which technology solutions they needed and could adapt quickly.

Increased demand for technology

As lockdown restrictions began to ease in July, TechUK stated that businesses had experienced two years of digital transformation within two weeks.

With very little preparation, organisations across the UK required cloud services and other technology solutions to support widespread remote working.

Traditionally structured businesses without flexible policies, modern infrastructure or digital transformation plans were forced to adopt new technology to continue operating during lockdown.

Many subsequently recognised how technology could:

• Improve internal capabilities
• Protect the business against unexpected disruption
• Support remote and flexible working
• Strengthen services and customer value
• Keep teams connected and productive

Although the initial surge in digital transformation may have slowed, businesses became more reliant on technology than they had been in 2019.

This was likely to have a continued positive impact on investment within the technology sector.

Development accelerated during lockdown

Specialist technology recruiter Jonathan Moran said there had been considerable discussion about this subject across his network during lockdown.

Some development teams that would ordinarily have been focused on resolving bugs were able to redirect more time towards product development and innovation.

This allowed businesses to add value for clients and accelerate work that had originally been planned for 2021.

Manchester Digital also interviewed Jonathan about recruitment within the technology sector.

He explained that although hiring paused temporarily for some businesses, the underlying workload remained. Companies still required people to deliver their projects.

The skills shortage remained

Despite the sector’s resilience and growth, technology continued to face a significant skills shortage.

As opportunities increased, developers and designers remained in high demand.

For jobseekers, experience within a technology discipline was therefore a considerable asset during an otherwise challenging employment market.

Better Placed can help you explore opportunities across software and technology and ensure that your experience is appropriately recognised.

Contact Jonathan Moran to discuss your ambitions or any concerns before beginning your next job search.