Jessica O'ConnorTechnology roles are driving UK wage growth in 2026, with new analysis revealing that demand for specialist skills in artificial intelligence (AI), data and software engineering is pushing pay higher, while lower-paid frontline sectors continue to fall behind.
Analysis from Totaljobs of more than 21.6 million job adverts found that median advertised pay has risen 7.5% year-on-year to just over £33,500.
The increase is being fuelled by strong employer demand for advanced technical expertise, with mentions of technical skills in job ads rising 12% between 2024 and 2025.
Despite this growth, many workers are still struggling with the cost of living.
Totaljobs’ Salary and Benefits Report 2026 found that while 63% of workers received a pay rise in the past year, more than half (53%) have cut back on leisure spending and nearly a third (32%) have reduced spending on essentials.
The highest-paid jobs were overwhelmingly concentrated in the technology sector.
Median salaries for Python developers (£90,000), technical architects (£87,500), AI software developers (£75,000) and senior software engineers (£70,000) topped the rankings.
One in four recruiters (25%) now rank AI and automation skills as the most valuable factor when deciding pay or progression, ahead of leadership and other technical skills.
Tech workers were also among the most likely to benefit from rising wages, with 66% reporting a pay increase over the past 12 months.
In contrast, sectors with large customer-facing workforces continue to sit at the lower end of the pay scale.
Median salaries in hospitality (£27,258), retail (£27,466), travel (£27,404) and administration (£27,500) remained well below the national average, highlighting growing structural divides across the labour market.
London remained the UK’s highest-paying city, with a median salary of £40,000 and the widest range of available roles.
However, some regional hubs are beginning to close the gap, with Oxford (£37,500), Birmingham (£35,528) and Leeds (£35,000) posting strong median salaries, supported by demand across education, healthcare, technology and professional services.
Elsewhere, disparities were stark.
Swansea’s median salary stood at £29,307, more than £10,000 below London.
Luke Mckend, managing director at Stepstone Group, said: “Across the UK labour market, we’re seeing a clear recalibration.
“Hiring volumes remain softer than the post-pandemic peak, yet advertised pay continues to rise – particularly for roles requiring advanced technical, leadership or AI-driven skills.
“This growing skills premium reflects both the pace of technological change and the increasing pressure on employers to secure the talent that will future proof their organisations.
“These trends form part of a wider workforce rebalancing, where long-term structural forces are reshaping the supply and demand for skills.
“Employers are now competing not just on pay, but on their ability to offer sustainable career pathways, inclusive cultures and working models that meet evolving worker expectations.”
He continued: “With salary now a proxy for value, opportunity and equity, accessible data is essential to building a more informed and competitive jobs market in 2026 and beyond.
“Employers who embrace this recalibration by investing in skills, embedding fairness and aligning their workforce strategies with broader economic realities, will be best positioned to thrive in the years ahead.”
