Tech Nation Report 2017
Digital economy is one of the UK economy’s success stories, growing at twice the rate of the wider economy and key to boosting UK productivity with GVA worth £97 bn - up 30% in five years
People who want to secure a well-paid job on leaving school or university should consider a career in the tech sector, as average salaries are 44 per cent higher than those in the wider economy, a major new report reveals.
Tech Nation 2017, the latest edition of the annual report from Tech City UK, finds that the average advertised salary for digital-tech jobs has now reached £50,663 a year, compared with £35,155 for the average non-digital salary. Since 2012 there has been a 13 per cent increase in the advertised salaries of digital tech posts, compared with only a 4 per cent rise in those of non-digital jobs.
The publication makes clear to what extent the digital tech sector is helping to fuel the growth of the UK economy.
Tech Nation 2017 shows that the UK digital tech sector is one of the country’s economic success stories, growing twice as fast as the wider economy and creating highly skilled and well-paid jobs. The sector remains at the epicentre of the European tech scene but the new report also reveals some important new data that underlines how significant the sector is to generating economic growth nationwide.
- More than 1.6 million people work in the digital-tech sector, where tech salaries are now on average 44% higher than salaries in non-digital jobs
- The average salary in the sector has now reached £50,663.
- Since 2012 there has been a 13% increase in the advertised salaries of digital tech posts, compared with only a 4% rise in those of non-digital jobs.
The publication also demonstrates how the UK’s digital economy is now at the epicentre of Europe and attracting more new investment than any other continental country. In 2016, the UK continued to lead all other European nations in terms of the size and value of its tech sector. Investors from around the world ploughed £6.8bn into the UK digital sector, significantly more than its closest rival, France, which secured £2.4bn and Germany £1.4bn.
For young people with the right digital tech skills, there is a wealth of opportunity across the country. While the sector’s highest salaries are achieved in the capital, London does not have a monopoly on earning power. According to the report, most tech clusters have seen strong growth in digital tech salaries, while Newcastle, Sheffield and Leeds have experienced particularly impressive growth with salaries rising by over 25% in just five years.
New data on the salaries that can be achieved in the tech sector follows the unveiling of the
The Government’s Digital Strategy earlier this month, which lays out a plan to give millions of people the skills to build a world-leading digital economy. More than 2,700 people working or investing in the tech community were surveyed for Tech Nation 2017 and more than half of them said that their biggest challenge was finding people with suitable digital skills.
One important aspect of the 2017 report is the level of growth seen in the tech sectors in the regions outside of London and the South East. In 2016, for the first time ever, more investment from venture capital or private equity funds went to companies’ whose headquarters are outside of London. The regions attracted 68 per cent of all VC and private equity investment in the UK.
Tech Nation 2017 is published with a foreword by the Prime Minister in which she acknowledges that digital businesses are strengthening local economies nationwide. Theresa May also repeats the Government’s commitment to building on the UK’s strengths in this area, putting the digital sector at the heart of the Government’s modern industrial strategy.
What is Bristol & Bath's tech sector worth?
Digital Turnover - £8.1 billion puts us third after London and Reading, ahead of Manchester and Cambridge
Digital Business Turnover Growth - +87% - top 5 (2011 - 2015)
Digital Gross Value Added - £1.7 billion (2013 - 2015)
High Growth Digital Businesses - 17.4%
Average number of startup births per year - 225 (2011 - 2015)
Advertised Digital Salary - £47,063
Bristol & Bath digital tech economy jobs - 35,924
Bristol & Bath tech workers say:
92% rate quality of life as good
88% rate digital growth optimism as good
Nick Sturge, Director, Engine Shed said: “We’ve known for some time that the Bristol and Bath region is a growing international hot spot for the tech sector and these stats prove the case. We’ve seen a significant upswing of successful start-ups and scale-ups, such as YellowDog, Neighbourly, 5AI and Graphcore as well as established businesses taking root in the area, such as Strava, alongside continued investment and commitment by our four universities. The decision by Oracle to base its UK start-up accelerator programme here in Bristol is another strong indicator of the region’s tech strength which we do not see abating but continuing to grow over the next few years. Engine Shed is working with other actors in the local ecosystem to ensure that this growth works for everyone in the Bristol & Bath city region”.
To read the whole report visit techcityuk.com/technation