Data Job Market Analysis Q2 2024

Taking key learnings from last year, monitoring the market weekly and then reflecting on a quarterly basis helps us as a business to become more agile and I hope to pass on these insights to others.

Economy

As a backdrop, taking employment government data for Q1, we can see that the employment rate was at 75% for individuals aged 16 to 64 years, which was a slight decrease from the previous year. Unemployment was estimated at 3.9%, indicating a slight increase compared to the prior year (Office for National Statistics). Despite a challenging economic landscape, there's a silver lining as headline inflation is expected to near the 2% target, potentially improving living standards for low-income households in 2024. However, consumer prices are anticipated to be significantly higher than early 2021 levels, and corporate insolvencies are expected to grow, which could impact job security and creation (taken from a PwC report).

Growth

I feel quite optimistic about Q2 and the rest of 2024. I am encouraged to see many of our clients sharing growth plans, renewed interest in consultancy services and a wide range of job opportunities, spanning multiple industries. I can cautiously say, the job market has picked up. With that, however, follows other challenges, candidates are still experiencing the effects of 2023 – 400+ applications for one role is sadly becoming the norm, with competition still high and AI “assisting” job seekers who are applying for roles. 

Comparing our proprietary data with wider market data we can see that so far in Q1 and going into Q2 and beyond, there is an uplift in employer hiring intent. For example, the Manpower Group Employment Outlook Survey highlighted a steady national employer hiring intent at +27%, led by sectors like Financial Services, Real Estate, and IT, which exactly reflects our own experience at KDR. 

Markets

As mentioned, the finance and insurance market in particular has performed well in Q1 and the range of roles we have been working on shows how diverse the skillsets required are. Reflecting on conversations held across Q1, although there will be a continued need for cyber security, cloud, AI and machine learning skillsets, running alongside these more hyped skills is data governance. Data governance and wider data management skill sets are in high demand. According to data from our State of Data Annual Reports, data governance has been a priority over the last two years, before the influx of generative AI data (in particular), and it’s now in even more demand due to the amount of data flooding businesses and their systems. Often seen as the less attractive alternative for young talent coming into the sector, we have been working to elevate these functions amongst the student cohorts we worked with in Q1, particularly with Sheffield University (which has been cited as the global number 1 school for information management courses) and 2 academy trusts across the North West.

Trends

It has been interesting to see an increase in skills-based hiring amongst our client base. This of course helps with ED&I efforts and swerves the university and experience headlock we have perhaps seen a prevalence of in previous years. 

Salaries

Looking at salaries, the prediction was for 5% growth this year. We are seeing a slight plateau of salary growth across our core sectors, however the heights reached over the last 2 years has far out-performed national average increases so this is not surprising. If you are unsure of where your roles currently stand against the market, I would advise conducting a salary benchmark exercise in Q2 to ensure that you remain competitive and that you are also not over-paying new roles. Incidentally, we have noticed a big increase in demand for contractors over permanent positions, this shift is part of a broader trend towards cost optimisation and reflects the industry's adaptation to economic pressures and the evolving work landscape.

Q2

Despite a challenging economic environment, we are finding that sectors showing robust growth offer promising opportunities for data and analytics professionals. Overall, I believe the Q2 outlook for data and analytics jobs in the UK is optimistic, with better outcomes for candidates on the market. As an aside note, I have noticed a growing trend over the course of 2023 and so far in ‘24 for AI assisted applications. I would recommend candidates keep their nerve and ensure every application is personalised and tailored to the role. Keep applying, despite seeing 100+ applicants, because with this rising trend for AI assisted applications, there is a real decline in the quality of applications coming through. You will shine through that 100 list of applicants if you stick to your skill sets and as previously mentioned tailor your application to the role and company. By that I mean, bring the skills mentioned in the job advert to the top of your CV and mention your experience and outcomes in these areas in the opening summary or cover letter.