The headline
Anyone running a technology business in the North will have felt the squeeze of the past two years. Pipeline cycles lengthened, budgets tightened, and hiring decisions that would have taken a week in 2022 began to drag on for months. The latest KPMG and REC UK Report on Jobs (April 2026) signals that the tide is turning and turning faster in the North than in most of the rest of England.
- The North of England is back in hiring growth, outperforming much of the UK.
- Permanent hiring is rising strongly (the highest level in ~4 years), creating a more positive environment for Lancashire tech employers.
- However, the market is split: permanent hiring is up, and contracting is still weak.
Key Trends for Lancashire Tech & IT
1) Permanent hiring is recovering — but very targeted
- Employers are hiring again, but selectively rather than at scale.
- Strong demand for:
- C# developers and specialist engineers
- Senior and mid-level technical talent
- Product and engineering leadership roles
- Generalists face more competition; specialists remain scarce and in demand.
Takeaway: Lancashire firms need to act quickly and hire precisely when the right talent becomes available.
2) Shortage of tech sales and commercial talent
- A quiet but critical shortage exists in:
- Account Managers
- Business Development Managers
- Pre-sales engineers
- These roles are especially hard to fill in tech due to the complexity of offerings.
Takeaway: Commercial hiring is a bottleneck—important for any growth plans in 2026.
3) The contract/temporary IT market is still struggling
- Contract roles declining (6th consecutive month).
- Day rates are falling, and fewer contract renewals.
- However, vacancies are starting to tick up slightly.
Key shift:
- Many contractors are now open to permanent roles for the first time in years.
Takeaway for Lancashire:
- Opportunity to convert contract talent into permanent hires.
- Reassess contractor vs in-house strategy.
4) Candidate availability rising (more talent available)
- Candidate supply in the North is growing faster than elsewhere in England.
- Driven by:
- Redundancies (especially from tech scale-ups)
- More people are open to moving jobs
The Reality:
- Talent pool is stronger and more accessible, but…
- Competition between candidates is higher.
Takeaway:
This is one of the best hiring windows in recent years for Lancashire employers.
5) Salaries: moderate overall, but high for key skills
- Pay is rising modestly overall, not at 2022 levels.
- But:
- Specialist and senior roles command higher premiums
- Hard-to-fill roles are quietly getting more expensive
Takeaway:
- Expect to pay more for top talent, even if averages look stable.
What This Means for Lancashire Employers
- Act now on key hires – strongest opportunity in years
- Move quickly – good candidates won’t wait
- Rebalance contractor vs permanent workforce
- Prioritise commercial hires to support growth
- Budget realistically for in-demand skills
What It Means for Local Tech Professionals
- Best market since 2022 for permanent roles
- Specialist skills = strongest bargaining power
- Contractors may find better stability in a permanent position
- More opportunities—but also more competition per role
The Bottom Line for Lancashire
- The market is recovering, but not evenly
- Permanent hiring momentum is real and accelerating
- Talent availability is up, but top skills are still scarce
- Smart, fast hiring decisions will define success in 2026
If you’d like to talk through your tech or IT hiring plan, or you’re a technology professional thinking about your next move, we’d be glad to have a conversation with you
Gary Keay — GK Recruitment Data source: KPMG and REC UK Report on Jobs: North of England, April 2026 (© 2026 S&P Global, produced in association with REC). ONS earnings data via S&P Global Market Intelligence.