IT & Software: 2025 Q1 Market Landscape & Salary Insight Report

The T2M 2025 IT & Software Q1 Market & Salary Report is live, and it’s packed with insights you don’t want to miss.

T2M’s Head of IT, Sam Birtwistle, breaks down what’s really happening across the tech hiring landscape; from in-demand roles and salary shifts to what top talent is looking for.

Hiring Managers: if you’re struggling to secure the right people, this report is your cheat code.


Tech Professionals: if you’re eyeing your next move, this is the intel you need to get paid what you’re worth.

IT & Software Recruitment
IT & Software: 2025 Q1 Landscape

If FY24 was the year of “wait and see,” FY25 is all about action.

The businesses making moves now, investing in top-tier talent, embracing flexibility, and thinking ahead, are the ones already pulling ahead of the pack. The rest? Risk being left in the dust in a market where candidates are not just scarce… they’re selective.

This year isn’t about predicting the future. It’s about acting on it.

Download: 2025 Q1 Salary Insights – T2M IT & Software

What's the landscape looking like?
  • Salaries take a hit – In some cases we’re seeing a shift to a buyer’s market right now, with increased competition pushing salaries down. However, overall, we’re still in a candidate-short market.
  • Applications are up – We’ve seen a +6% rise in applications as more candidates test the waters.
  • Vacancies are down – We’re back to pre-pandemic levels of open roles, meaning more competition per job.
  • Green Shoots – Confidence is creeping back. Hiring plans are picking up and economic optimism is growing.
How is the job market looking?

2025: The IT & Software Job Market Breakdown

Along with a lot of industries in 2025, it’s a mixed bag out there. So, knowing where you stand has never been more critical.

 

Junior Software roles are taking the hit
Tough times for juniors in software. Median salaries for Junior Software Engineers are down 11%, while mid-level Software Engineers are up 25%. It’s a stark divide, and proof that experience is paying.

 

Programming languages: winners & losers

Big wins for C#, React, Angular, Rust, C++ and Go, with salary hikes between 7% and 21%.

On the flip side, Java, PHP, and Python have all seen 3–4% drops in median salary.

 

Cloud remains solid
The Cloud market is holding steady, salaries are trending upwards across most roles.

 

AI & Machine Learning are heating up
As talent floods into AI and data roles, salaries are spiking. It’s the hottest corner of tech right now — and the market reflects it.

 

Project Delivery? Hit by hesitation
Stop-start projects = fewer jobs and flatter salaries. This space is still feeling the ripple effects of business uncertainty.

 

Cyber Security sees pressure rise
More demand + fewer candidates = upward pressure on salaries. The cyber talent gap continues to bite.

 

Infrastructure & Support are on the rise
Both vacancies and salaries are up, but there’s also a larger pool of available candidates to choose from.

 

Exec hiring goes niche
There’s a sharp focus on specialist senior and executive-level hires. Salaries are being driven up, but so is candidate availability, meaning clients can afford to be picky.

Key take aways?

Hiring Outlook: What Employers and Candidates Need to Know

For Hiring Managers

Many are frustrated with the hiring process at the moment, citing a lack of feedback, poor communication and unnecessarily extended hiring processes – but hiring businesses now have many options where they once didn’t and should focus on quality over quantity to direct their recruitment approach.

This will help to alleviate causing issues with dealing with much higher-than-usual volumes, to control better recruitment outcomes, as well as helping you speed up the process.

 

For Job Seekers 

Increased competition is making it hard for many to land a role, so you’ll either have to be flexible in your position or flexible on your salary to compete.

However, we are still in a candidate-short market and if your skills are in high demand you might not understand what everyone else is talking about.

You might also find your skills aren’t as in demand as you thought they were, so you may have to consider reskilling or focusing on progression in your current role. New projects are being kicked off, so hang in there!

Download the full report

Whether you’re exploring your next move or scaling up your tech team, our insights are just the beginning.

Download: 2025 Q1 Salary Insights – T2M IT & Software

Are you a candidate looking for some advice or a new opportunity, or perhaps you’re a hiring manager looking to expand your team? Get in touch to experience the T2M approach for yourself.

Because when you bring us in, we get it done.