According to a new report from Tech Nation, the UK digital economy grew 32% faster than the rest of the economy between 2011 and 2014 – creating jobs at an unprecedented rate. The sector accounts for 1.56m jobs, with the UK digital workforce growing by more than 10% over the three-year period – three times faster than the wider job market.
David Cameron hailed Britain’s technology sector as “extraordinary,” after the report revealed that digital-based companies are generating £161bn for the economy.
He said: “The digital economy is expanding at an extraordinary pace, creating jobs and fuelling growth in regions and cities up and down the country, providing security and opportunities for working people.”
Upon hearing the news, the Prime Minister pledged to use “all the levers” at the government’s disposal to support digital organisations.
He added: “This government has stood foursquare behind the country’s digital transformation, backing new technologies, investing in infrastructure, supporting investment, removing barriers to innovation and helping upgrade the digital skills that a modern work force needs.
“We will continue to back the innovation, creativity and entrepreneurship that is redefining and strengthening the modern British economy.”
Tech Nation’s report, which is compiled by Tech City, the government-backed body that promotes technology in the UK, is the most comprehensive study of the UK’s digital sector.
The report also found that:
- More than 80% of digital clusters have demonstrated growth in turnover, jobs and advertised digital salaries.
- App and software development is the fastest-growing niche in the digital economy, growing by 17% in 2015.
- Around 2/3 of technology-based businesses operate outside of London.
- Data companies and manufacturers posted growth of more than 10pc.
Chair of Tech City UK, Eileen Burbidge said: “The impact of this sector is considerable. The UK’s credentials as a home for digital excellence have been well established, and the enormous opportunities on offer will allow the UK to fulfill its potential as a nation driven by digital innovation.”
To read the full report, click here.