Gen Z hiring jumps 14% at UK tech SMEs, says report

Employment among young workers at UK science and technology small and medium-sized businesses rose 14% year on year in March, according to Employment Hero, pointing to stronger hiring among Gen Z staff than across the sector as a whole.

The analysis drew on anonymised payroll data from almost 700 UK science and technology businesses, representing more than 9,700 employees. Across all age groups, employment in the sector rose 0.3% month on month and 6.3% year on year in March.

The data suggests smaller employers are adding staff even as attention remains focused on large technology groups expanding in London. It also indicates that younger workers are entering science and technology roles faster than the wider workforce in the sector.

Wages also increased. Across all generations, pay in the sector rose 0.7% month on month and 4% year on year in March, while Gen Z workers recorded monthly wage growth of 1.9%.

The findings come as employers continue to report shortages of specialist staff in technical fields. In that environment, rising pay may reflect tighter competition for workers, particularly those at the start of their careers.

Regional Shift

The regional breakdown shows stronger job growth in science and technology SMEs outside the capital. Employment in Greater London fell 0.3% year on year in March, while the North of England recorded growth of 11.5% and the East of England posted 19.7%.

The Midlands saw year-on-year employment growth of 2.7%, while the South of England excluding London recorded a decline of 2.3%.

These figures add to evidence that hiring in parts of the UK technology economy is spreading beyond London. While the capital remains a major centre for investment and company formation, the payroll data points to a broader geographical pattern among smaller businesses.

Science and technology has been a priority for UK economic policy, backed by public funding commitments and a broader push to support AI and research-led industries. Debate has also intensified over whether AI will reduce entry-level opportunities or create new kinds of work.

Separate research commissioned by Employment Hero found that 62% of business leaders are already creating new roles in response to the emergence of AI. The latest payroll figures suggest that investment in the sector is translating into hiring, including among younger staff.

The data comes from a subset of the broader Employment Hero Jobs Report. Science and technology accounts for 8% of the company's total sample, or close to 10,000 employees across the UK.

Kevin Fitzgerald, UK managing director at Employment Hero, said: "Supporting the growth of the UK's science and technology sectors has been a long-term goal of successive governments, and the UK has become home to companies that demonstrate genuine sector leadership. Our data shows that the UK's focus on science and technology is beginning to pay off, driving growth and providing young people access to new types of jobs.

"More broadly, this reflects how technology and AI are transforming the labour market, creating new opportunities and reshaping what employers look for in candidates. Amid a backdrop of chronic skills shortages and an ageing workforce, there is understandably strong competition for talent in this sector, demonstrated by the strong wage growth recorded last month. While this is good news for employees, we must be mindful that this may create competitive pressures for smaller businesses working in these industries."