UK digital businesses up 30% in 5 years, Tech Partnership data reveals
The number of UK digital businesses grew by 30% between 2010 and 2014, new data from the Tech Partnership has revealed; almost twice that of UK industry as a whole.
Tech skills shortages persist, particularly in London, says latest Tech Partnership data analysis
The latest Tech Partnership Fact Sheet, published this month, shows a continuing shortfall in digital professionals, with shortages particularly pronounced in London and the South East.
Digital apprenticeships growing at more than double the UK average, shows Tech Partnership analysis
More than 17,000 people started digital / tech apprenticeships in the UK in 2014/15, according to the Tech Partnership’s latest data analysis.
The factsheets provide a snapshot of key, current skills themes for the digital economy.
Key findings and links to the factsheets are available below.
For more reports from the Tech Partnership and other partners, visit the Resources Library.
- Factsheet: Demand For Digital Specialists (Jul 16)
- Factsheet: Tech Industry Trends (June 16)
- Factsheet: Digital Apprenticeships in the UK (March 16)
- Factsheet: Tech Industry Workforce (March 16)
- Factsheet: Tech Specialists (Feb 16)
- Factsheet: Tech Graduates (Nov 15)
- Factsheet: Earnings of Tech Specialists (Sep 15)
Factsheet: Demand For Digital Specialists (Jul 16)
This fact sheet provides an analysis of demand/supply trends for digital specialists in the UK using bespoke data from ITJobswatch, with supporting information from the ONS Annual Population Survey (APS) and the Eurostat ICT usage and e-commerce in enterprises survey.
See key finding below and download the full factsheet
- On average, there were 163,000 vacancies for digital specialists advertised across the UK during each quarter of 2015.
- Six in ten adverts (61%) for digital specialists in 2015 were based in London or the South East of England.
- As a group, Developers were the most commonly sought digital specialists accounting for just over one quarter (27%) of all jobs advertised.
- At sub-group level, Project Managers and Business Analysts were the most commonly advertised positions within both the permanent and contract markets.
- A degree was the most sought qualification in 2015 (featuring in 11% of digital job advert) followed by a Cisco then Microsoft certification.
- The average advertised rates of pay for digital specialists in 2015 were £48,900 per annum for permanent positions and £410 per day for contract jobs.
- There were 109,000 ‘ready candidates’ to take up jobs for digital specialists throughout 2015 - 80,000 digital specialists looking for a new/additional job and 29,000 unemployed digital specialists.
- The shortfall in the number of ‘ready candidates’ compared with advertised positions was most pronounced in London where there were just 0.4 candidates/job on average during 2015.
- Latest estimates from ONS/Eurostat confirm the prevalence of digital skills shortages in 2015 with an estimated 39% of ‘digital recruiters’ reporting hard-to-fill vacancies rising to 52% of businesses in the digital sector.
This fact sheet provides an overview of the digital industry structure in the UK using the latest data from the Office for National Statistics Interdepartmental Business register (IDBR), Annual Population Survey (APS) and Annual Business Survey (ABS)
See key findings below and download the full factsheet
- Of the 31m people working in the UK in 2015 1.75m (6%) were working in the digital sector – 1.1m (61%) within digital businesses and a further 0.65m (39%) as digital specialists within other parts of the economy.
- There were 170,000 digital enterprises in the UK in 2015 representing 7% of the entire UK business population.
- Just under one half (48%) of digital enterprises were located in London/the South East of England.
- At sub-regional level, Reading was the local authority with the highest density of digital enterprises – 21% of local business in 2015.
- More than nine in ten digital enterprises in 2015 were IT businesses (91%) and virtually all (93%) were digital service providers.
- The number of digital business increased by 30% between 2010 and 2015 – almost twice the increase in UK business enterprises as a whole (17%).
- Virtually all digital enterprises (99.8%) were classed as SMEs and the proportion of large digital employers was half that for UK industry as a whole (0.2% and 0.4% respectively).
- In total there were 1.16m people working in digital businesses in 2015 – 3% of the UK workforce.
- Employment across digital businesses is mainly focussed in IT (74%), with Telecoms employing 24% and Games 2%.
- The number of workers in the digital industries increased by almost three times the rate recorded for all UK workers over the past five years (2010-2015).
- Turnover amongst digital businesses in 2014 was £209bn, 6% of the UK total.
- The gross value added (GVA) by digital enterprises was £94.8bn – 6% of the annual total across all UK industries.
- Of the digital GVA contribution, 62% was from IT businesses, 37% from Telecoms and 0.4% from Games establishments.
- The increase in digital GVA over the five years 2009-14 exceeded overall growth in the economy in the same period with comparison figures of 27% and 20% respectively.
- The gross value added to the economy per worker in the digital industries was almost double the norm for UK workers, £92,000 for digital industry workers compared with just £54,000 for workers as a whole.
This fact sheet provides an overview of digital apprenticeship participation across the UK using workforce estimates from the ONS Labour Force Survey together with apprenticeship statistics provided by the Skills Funding Agency/BIS (England), Skills Development Scotland, The Welsh Government and DELNI Northern Ireland.
See key findings and download the full factsheet
- Just under one in ten (9%) of digital specialists in the UK have completed or are in the process of undertaking a digital apprenticeship (111,000 people).
- In 2014/15 there were approximately 30,000 individuals on digital apprenticeship programmes across the UK - 3.1% of the overall total (962,000 people).
- In the year 2014/2015 there were 17,200 recorded starts on digital apprenticeship programmes – 3.1% of the total number of starts in the UK.
- The number of digital apprenticeship starts increased by 21% over the past year compared with 10% growth in the overall number of apprenticeship starts across the UK.
- By nation/region the South West and the South East of England accounted for the largest share of digital apprenticeship starts in 2014/15 and the South West of England exhibited the highest incidence of digital apprenticeship starts at 5.3% of all starts within the region.
- Digital apprenticeships starts tend to be at a higher level than those in other disciplines and in 2014/15, just over seven in ten digital starts across the UK (71%) were at level 3 or above compared with slightly over four in ten (42%) apprenticeship starts as a whole.
- Almost three quarters (74%) of all digital apprenticeships starters in the UK during 2014/15 were aged 24 or below, compared with 59% of apprenticeship starters as a whole.
- Just 20% of those starting digital apprenticeships in 2013/14 (2014/15 data unavailable) were female compared with more than one half (52%) of those starting apprenticeship programmes as a whole.
- There were 8,800 NVQ achievements recorded amongst those on digital apprenticeship programmes in 2013/14 (2014/15 data currently unavailable) accounting for 2.9% of all NVQ achievements made by apprentices in the UK at that time (299,200).
This fact sheet provides an overview of current and future employment patterns for tech industry workers (in tech or support roles) in the UK using the latest workforce estimates from the ONS Labour Force Survey together with internal forecasts developed in association with Experian.
See key findings below and download full factsheet
- There were 1.75m people working in the tech sector in 2015, of which 1.1m were working in tech businesses.
- In total, more than nine in ten people (95%) working in tech businesses were working in service orientated companies – IT services in particular.
- Almost six in in ten people (58%) working in tech businesses were employed in tech focussed roles.
- More than four in ten tech industry workers (44%) were working in London/the South East of England in 2015 compared with less than one in three workers as a whole (29%).
- Just under one quarter (23%) of the tech industry workforce were women compared with a figure of 47% for workers as a whole.
- On average, tech industry workers were of a similar age to others in the workforce though there tended to be slightly less within the younger (16-24) and older (55+ in particular) age bands.
- Tech industry workers tend to be much more highly educated than other workers and in 2015 just over six in ten (62%) were found to hold some form of HE level qualification.
- In 2015, the average gross weekly earnings for all full-time staff working in the tech industries was 37% higher than the all industry average.
- Overall employment growth for the tech industries between 2015-25 will be around 3.2% though much higher growth rates are predicted for industry sub-sectors notably tech sales/distribution and the games industries.
This fact sheet provides an overview of current and future employment patterns for tech specialists (also known as IT/Telecoms professionals) in the UK using the latest workforce estimates from the ONS Labour Force Survey together with internal forecasts developed in association with Experian.
See key findings below and download full factsheet
- There were 1.75m people working in the tech sector in 2015, of which 1.3m were working as tech specialists.
- Just under one half (49%) of UK tech specialists were working in tech businesses – primarily in the service sector.
- More than four in ten tech specialists (44%) were working in London/the South East of England in 2015 compared with less than one in three workers as a whole (29%).
- Just under three quarters (72%) of tech specialists were working in ‘Professional’ positions – more than three times level amongst workers more generally (20%).
- Just 16% of UK tech specialists in 2015 were women compared with a figure of 47% for workers as a whole.
- Like other workers, the majority of tech specialists in 2015 were aged between 24 and 54 but at 7% the proportion aged 16-24 was around half that of the workforce as a whole (13%).
- Tech specialists tend to be much more highly educated than other workers and in 2015 just over two thirds (68%) were found to hold some form of HE level qualification.
- Tech specialists are more highly paid than other workers and amongst those in full-time work the average (gross weekly) wage was 41% higher than the UK norm.
- Between 2015 and 2025 the number of people working as tech specialists is forecast to increase by approximately 28% to 1.65m people.
- By comparison the UK workforce is expected to grow only by around 7% between 2015 and 2025.
- In total, there will be 1.71m gross job opportunities for tech specialists over the 2015-25 period of which 79% (1.36m) will be replacement positions (to cover tech specialists changing job/leaving the workforce).
This fact sheet provides an analysis of qualifiers and destinations data collected by HESA (the Higher Education Statistics Agency) for 2013/14 focussing upon new graduates from tech courses i.e. IT (computer science) and telecoms courses.
See key findings below and download full factsheet
- There were 777,600 qualifiers from UK HEIs in 2013/14 of which 28,400 (3.6%) had followed a tech related course. Of these, 19,600 (69%) qualifiers were of UK domicile and amongst this group 70% (13,700) had gained an undergraduate degree.
- The majority (91% or 12,500) of those gaining an undergraduate degree in a tech discipline did so via full-time study and of these 83% (10,400) were new graduates (i.e. those aged 24 or below).
- Just 16% of new graduates from tech courses were female compared with 44% of new graduates as a whole.
- The proportion of new tech graduates achieving a higher second or above (70%) was five percentage points below the average across all disciplines (75%).
- Almost eight in ten new graduates from tech courses were in employment six months after leaving HE (78%) compared with just over seven in ten (73%) for new graduates as a whole.
- Six in ten new tech graduates that were in work post study were in tech roles (60%) and of these just over one half (54%) said the main reason for taking this positions was that it ‘fitted their career/was exactly the type of work they wanted’.
- More than six in ten (63%) new tech graduates working in tech positions stated that their qualification was a formal requirement for the job and just over one half (51%) thought that from an employer perspective, the subject studied was the most important aspect of their course.
- Around nine out of ten (87%) new tech graduates working in tech positions stated that their HE study had prepared them well or very well for work.
- Whilst the proportion of new tech graduates continuing their studies six months after leaving HE was just half that of new graduates as a whole, nine in ten thought their course had prepared them ‘well’ or ‘very well’ for further study.
- The unemployment rate amongst new graduates from tech courses in 2013/14 was 10% compared with a figure of just 5% for new graduates as a whole.
This fact sheet provides an analysis of earnings data for tech specialists drawing upon published and bespoke data provided by the Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) survey for 2014.
See key findings below and download full factsheet
- The median gross annual earnings for tech specialists working as full-time employees was £36,600 in 2014 - more than one third (35%) higher than the level for all full-time employees at that time (£27,200).
- Tech specialists working in London were earning the most, with reported median earnings of £43,600pa i.e. 19% above the overall UK figure.
- The highest paid tech specialists were those working as IT or Telecoms Directors – these roles associated with median gross annual earnings of £64,500 per annum.
- Tech specialists were generally found to be earning more than those working in non-tech roles of an equivalent level though the median earnings of Operations/IT User Support Technicians were 9% less than others employed in ‘Associate/professional/technical’ occupations.
- The median annual earnings for tech specialists working in tech companies was higher than for those employed in other types of businesses.
- The annual earnings of female tech specialists were 15% lower than that recorded for men employed in such roles (i.e. £32,000 and £37,700 respectively) though the shortfall in female earnings was less than that for female employees as a whole (20%).
- Earnings for tech specialists rise with age from £20,500pa for those aged 16-24 to a peak of £40,700pa for those aged 45-54.