The technology sector in the UK is outperforming the rest of the country’s private sector in terms of both business confidence and employment growth, according to new research.
The research, jointly carried out by tax advisor KPMG and financial information service firm Markit, indicated that tech firms have enjoyed a higher hire rate in the UK than the rest of the private sector for ten years. The tech sector’s lead on employment gained steam following the UK’s recession, creating a larger gap in hire rates since 2008, with larger tech firms generally outperforming smaller ones.
The report also provided a geographical snapshot of UK tech sector employment patterns. Unsurprisingly, the strongest performance remains in the south-east, situated around the ‘Golden Triangle’ tech clusters of Oxford, London, and Cambridge universities. The analysis reinforced the notion that good infrastructure breeds good business, with each of the largest tech clusters showing a close proximity to airports and transportation links.
Tudor Aw, Head of Technology at KPMG, said: “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. 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 and also continues the trend that tech companies are consistently more upbeat regarding hiring intentions than other UK sectors.”
