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UK tech sector outperforms other industry

by on21 October 2013

Best industry in the private sector

The UK technology sector has outperformed the rest of the UK private sector in terms of employment growth over the last ten years. A new joint report by KPMG and Markit shows that UK tech companies are more confident about the business outlook than firms in other industry sectors.

Growth expectations at tech companies well above UK private sector average, which the report writers seem to think that it shows how much impact the sector has on the country’s economic performance and the important role tech companies play in the any recovery. The pair have also looked at something they dub the Tech Sector Purchasing Managers’ Index, a new method for tracking job creation and economic growth at UK technology companies.

According to the index, 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.

Tudor Aw, Head of Technology at KPMG said that the study reveals a number of key findings. Most 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 year,” he asid.

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, Aw said. 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.

Wokingham is the top technology employment cluster in the UK. London has the second-highest proportion of tech workers nationally, with the footprint particularly large in the boroughs of Richmond upon Thames and Hounslow.

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