UK high tech is star performer in recovery – report
UK technology firms are outperforming the rest of the UK private sector in terms of employment growth over the last ten years, according to joint report by KPMG and Markit.
“UK tech companies are more confident about the business outlook than firms in other industry sectors, with growth expectations at tech companies well above UK private sector average,” said the report.
“This underlines the impact the sector has on the country’s economic performance and the important role tech companies play in the burgeoning recovery,” said the report.
According to the Tech Sector Purchasing Managers’ Index (PMI), quoted in the report, job hiring trends over the last ten years have consistently outpaced those of other sectors. UK tech sector job and output growth have been especially strong since the end of the recession, with larger tech companies reporting steeper employment growth than smaller tech firms.
“Our new report Tech Monitor UK, the first of an ongoing series, reveals a number of key findings: importantly, it shows that the UK tech sector has generated solid rates of job creation over the last four years and that it has consistently outpaced other UK private sectors in creating jobs since the global financial crisis in 2008/09,” said Tudor Aw, head of technology at KPMG.
“In terms of business outlook and confidence, we can take heart that tech companies in the UK are bullish about the next 12 months. Optimism is at one of the highest levels since data was first recorded in late 2009,” said Aw.
UK tech employment clusters
The research reveals that the ten local authorities with the highest proportion of tech workers are all in the South East of England and are all located close to either the M4, M3 or M25 motorways.
There are important high-tech clusters at Wokingham in the Thames Valley Business Park, Rushmoor and Hart.
London has the second-highest proportion of tech workers nationally, with the footprint particularly large in the boroughs of Richmond upon Thames and Hounslow.