New data analyzed by Tech Nation ahead of London Tech Week for the government's Digital Economy Council shows Cardiff now employs 21% of its workforce in digital tech roles.
The new data will be released along with numbers showing a nationwide surge in job vacancies in the digital tech economy over the past two months as tech companies bounce back from the pandemic with confidence.
Welsh software company Aforza, based in the Tramshed Tech collaborative area in Cardiff, is one of the few Welsh tech companies to create jobs. Aforza said it would create 100 new jobs last month. This is in line with the national trend that the number of jobs advertised in digital technology has increased by 36% in the past two months (June 7th to August 9th, 2020) as tech companies follow the challenges of the lockdown Have gained trust.
Before the lockdown, the digital tech sector consistently advertised over 150,000 jobs per week in the first three months of the year, according to the job website Adzuna. Job vacancies fell in line with all other sectors of the economy when the UK lockdown began but have since rebounded to 90,297 in the week of August 9th. Tech has the highest number of job vacancies in the UK after healthcare.
The numbers come from a Bright Tech Future report on jobs and skills in the country's tech sector due out next month. Analysis of Tech Nation of Adzuna data, referenced with ONS numbers, shows the extent to which tech created jobs across the UK in 2019 and through 2020. The report will show that the demand for certain skills – e.g. B. Full-Stack Developer – Increased has increased across the UK, while Software Developer is the most advertised role in 2019 (last year numbers are available for). Increased remote work makes the roles less location-specific. This provides an opportunity for people in regions across the country to gain access to high-paying, high-quality roles.
Nine cities have more than a fifth employed in digital technology
Cardiff is one of nine cities outside London that now has more than a fifth of the technical workforce. The others are Belfast, Glasgow, Edinburgh, Newcastle, Leeds, Bristol, Reading and Cambridge. The proportion of employees in the digital technology industry in Cardiff has increased slightly from 20% in the last year.
Over the past two years, jobs across the digital technology sector have grown by 40% and now employ 2.93 million people. The digital tech workforce now represents 9% of the total workforce in the UK and in 2019 comprised over 1 million people with non-technical skills, for example an accountant working in digital tech and 1.9 million with digital tech skills who are employed in various professions. The number of tech jobs advertised in 2019 outweighed several other sectors including legal jobs (up 7 times), manufacturing (up 8 times), and finance and accounting (2.7 times) .
Popular roles in Wales
In 2019 more than 56,500 digital tech positions were advertised across Wales. Almost half of them (23,334) were in Cardiff. According to Adzuna, 16.8% of jobs advertised in Wales are in technology. The demand for certain skills has increased significantly, e.g. For example, the number of vacancies in Cardiff has increased 153% for a civil engineer and 96% for a front-end developer.
Britain continues to create unicorns and see strong venture capital investments
Despite the difficulties of 2020, the UK remains the undisputed leader in the technology sector in Europe. One of Manchester's biggest tech achievements, Hut Group confirmed the strength of the online business last month when it announced it would target a public listing this year, which is expected to be worth £ 4.5 billion becomes. During the coronavirus pandemic, two new unicorns were also created from the UK – Gymshark and Cazoo – and the total number of unicorns in the UK increased to 82. There are more unicorns living in Britain today than in any other country on the continent and in Germany, the Netherlands and France combined.
The total venture capital investment in UK startups in 2020 was € 8.5 billion, according to Tech Nation Data Commons. This corresponds to EUR 4.0 billion for Germany and EUR 3.1 billion for French startups in 2020.
There are currently 120 companies valued at $ 250-1 billion, sometimes called futurecorns. Venture capital funds continued to raise in 2020, and many continued to invest in promising startups and scale-ups, some of which were backed by the government's £ 250m Future Fund. According to the data commons provided by Dealroom.co, there have been 27 rounds in 2020 so far with a volume of more than 80 million US dollars.
The last financial crisis sparked a wave of entrepreneurship in the UK with the launch of TransferWise, Farfetch and Zoopla, and continued commitment to VC investment throughout the lockdown will spark a similar post-coronavirus response.
The average salary for digital tech functions across the UK in 2019 was £ 39,000. However, average salaries range from £ 28,500 in the lower quartile to £ 55,000 in the upper quartile. The average salary in Edinburgh is £ 44,938 while that in Glasgow is £ 40,000, compared to an average salary of £ 30,000 in all roles.
The average salary in Edinburgh is the highest outside of London, where the average salary for digital tech in 2019 was £ 55,000, up 3% from £ 53,296 the previous year.
Taking into account the cost of living, cities outside of London can have significant attractions from an employment perspective. Edinburgh and Glasgow are the third and fourth best places in the UK for someone who works in the technical field to live and work. For data scientists and infrastructure engineers, Edinburgh was more attractive than London when considering the cost of living.
Tech Jobs and Non Tech Jobs
The software developer role is one of the top five most sought-after roles in UK cities, along with key workers roles such as nurses and social workers. The UK's cloud skills vacancies have increased 22% since 2018, while AI and cybersecurity grew 44% and 22% year over year in 2019.
There is ample evidence to suggest tech companies are recruiting for non-STEM roles, demonstrating how the sector is maturing and requiring professionals with extensive business skills and experience. Advertising for non-technical roles in technology companies has also increased in the industry. AO.com, the online electrical appliance retailer, recently announced that it is hiring 650 technical and non-technical roles across the country, such as delivery drivers and shift coordinators, to capitalize on the increasing demand for online shopping during Covid. Amazon has announced 10,000 new permanent technical and non-technical roles in the UK, as well as 20,000 seasonal roles. Similarly, non-tech companies are hiring tech roles, including Tesco, which would hire 16,000 new employees for its online grocery store.
The demand for roles such as customer service, product management and Scrum Master is increasing. The opportunities for employees with expertise in data ethics increased by 31% compared to the previous year. These growth areas show the potential of the digital technology sector to be an attractive destination for people looking to retrain and develop new skills as the economy recovers.
Digital Secretary Oliver Dowden said:
“These new numbers show the strength and depth of our tech sector as the job creation engine that will fuel our economy when we emerge from the pandemic. We are a nation of innovators, entrepreneurs and inventors, and technology will support our national renewal infrastructure revolution to unite and improve Britain. This government is helping people thrive by investing heavily in cutting-edge research, digital skills and digital infrastructure to support our economic recovery. "
Welsh Secretary of State Simon Hart said:
“The digital sector is an increasingly important part of the Welsh economy and the rapid growth of many digital companies across the country has created thousands of skilled jobs. Welsh tech companies will now play a critical role in our economic recovery from the pandemic and we will continue to support the growth of the sector in Wales. "
Gerard Grech, CEO of Tech Nation:
“For nearly a decade the UK technology sector has been on a steady growth path, producing more startups and scale-ups and attracting more venture capital investments every year. The pandemic threatened this development and hit some parts of the technology sector as well as the non-tech industry extremely hard. However, in the past few weeks, tech companies have found confidence to start hiring again. With digital adoption growing in all areas of our lives, it is likely that the technology sector will continue to be one of the best sources of new jobs this year, providing the jobs of the future across the country. "
Cindy Rose, CEO of UK, Microsoft:
"It is fantastic to see the UK tech sector leading the way in fueling the UK's post-Covid economic recovery with a boom in technology-related recruitment and jobs. At the same time, it highlights the critical need for everyone – industry and government – to find ways to fill the pre-Covid digital literacy gap, which has only deteriorated since then. Our shared commitment to closing the skills gap will help ensure inclusive economic growth and opportunities for all.”
Doug Gurr, UK Country Manager at Amazon:
"More than ever, technology is critical to keeping us all connected and moving the economy forward. We continue to invest heavily in jobs and skills in the UK, creating 10,000 new permanent positions and 700 apprenticeships in technical and non-technical roles, helping 200,000 small businesses with practical skills through our Small Business Accelerator, and providing free online STEM and computing resources for people of all ages and ages from diverse backgrounds to create a more diverse and comprehensive technological workforce.”
Ronan Harris, MD, UK and Ireland, Google::
“In such uncertain times, people across the UK have adapted quickly to new ways of life and technology has been key in making this possible. The right digital skills could transform people's future. That's why we're committed to helping one million small businesses stay open by the end of 2021 by being found online. We partnered with Digital Boost to offer 10,000 hours of free mentoring so charities and small businesses can adapt to working in this lockdown environment. "
Sabby Gill, Executive Vice President and General Manager of Sage UK::
“Covid-19 has shown how resilient and agile digitally activated companies are, and 28% of SMEs are starting online business in direct response to the pandemic. Government and industry must now work together to support SMEs on their digital transformation journey and drive economic recovery. "
Nicola Mendelsohn, Vice President, EMEA, Facebook:
“The numbers released today show both the importance and resilience of the UK technology sector. COVID-19 has accelerated society's transition to digital, and in the face of the economic recovery, the value of digital technology has never been more evident. Now is the time for the tech industry to share its expertise and energy to help businesses get back on their feet and to continue to support employment growth in the UK. "
Janet Coyle, General Manager, Business at London & Partners::
“The UK tech sector is still the light of the digital economy in Europe, with more startups, scale ups and unicorn companies than anywhere else. London is Europe's largest technology hub, home to world-class talent and innovative technology companies who drive change and progress. With the city having had a challenging six months behind it, it is poised to recover strongly, with the tech sector taking the lead early on in order to have the confidence to welcome new people. It is important that the technology sector continue to promote inclusivity and diversity to ensure that opportunities are available to all. "
Alex Chesterman, Founder and CEO of Cazoo:
“As a society, we quickly learn to adapt to a new digital life. Shopping, learning and even socializing online has now become a matter of course and offers great opportunities for entrepreneurial technology companies. The UK has the ability to build some of the world's best technology companies as long as we continue to invest in training and retraining our people. "
Sharmadean Reid, Co-Founder and CEO of Beautystack:
“Beautystack serves one of the sectors hardest hit by the lockdown and the challenge was enormous. However, wherever I look I see entrepreneurs who have rebuilt their business and strengthened it through the crisis. We are rebuilding for the future and we need to make sure we succeed. "
Nigel Toon, CEO and Co-Founder of Graphcore::
“Having started and grown our business outside of London in Bristol, we know the benefits of starting a tech company outside of the capital. Bristol and the west of England continue to be exciting clusters of technology and advanced engineering, and we continue to attract talent from around the world to work here. "
Ed Lascelles, Partner at AlbionVC:
“Coronavirus has shown companies that the urgent need for digitization and business-to-business technology will help stimulate the economy and get us back on track. The UK is fortunate to have some of the world's best scientists and engineers in its university laboratories and startups creating innovations that have great potential, whether in healthcare or in areas like AI and data analysis. Your time is really coming. "