Digital tech jobs are being created twice as fast as non-digital jobs
Digital tech jobs are being created twice as fast as non-digital jobs
Between 2011 and 2015, the number of digital tech jobs across the UK grew by 17%. That is more than twice the 8% growth seen in non-digital sectors.
On the surface, it appears that 3% of all UK employees are in the digital tech sector. However, when we consider those who work in digital tech roles within other sectors, the figure rises to 6% (a total of 1.64 million jobs.) This represents an overall increase of 85,000 digital tech jobs during 2015 alone.
| Non Digital GVA per worker (£k) | Digital GVA per worker (£k) | |
| 2011 | 2% | 2% |
| 2015 | 17% | 8% |
Source: BSD, Tech City UK, 2015
Employees in digital tech economy 2015
| Tech Jobs | Overall people in tech – 1.56M 2015 |
| Employees in tech businesses | 910,931 |
| Tech roles in traditional industries | 650,222 |
Source: BSD, Tech City UK, 2015
Employees in digital tech economy 2016
| Tech Jobs | Overall people in tech – 1.64M 2016 |
| Employees in tech businesses | 942,696 |
| Tech roles in traditional industries | 704,566 |
Source: BSD, Tech City UK, 2015
Employment in London-based digital tech businesses nearly doubled between 2011 and 2015. Dundee, Redruth & Truro and Sunderland also see impressive growth
| City | Digital Tech Employment Growth between 2011 – 15 |
| London | 95% |
| Dundee | 67% |
| Redruth & Truro | 61% |
| Sunderland | 49% |
| Edinburgh | 46% |
| Brighton | 36% |
| Southampton | 34% |
| Plymouth | 33% |
| Liverpool | 31% |
| Bournemouth & Poole | 30% |
| Reading | 30% |
| Exeter | 29% |
| Leeds | 29% |
| Cardiff & Swansea | 29% |
| Manchester | 27% |
| Norwich | 25% |
| Worcester & Malvern | 24% |
| Newcastle | 22% |
| Oxford | 20% |
| Sheffield | 15% |
| Leicester | 15% |
| Ipswich | 10% |
| Cambridge | 10% |
| Nottingham | 10% |
| Hull | 9% |
| Birmingham | 9% |
| Glasgow | 7% |
| Belfast | 1% |
Source: BSD, Tech City UK, 2015
Digital Tech employees are twice as productive as their non-digital counterparts and the gap is growing
The GVA of a digital tech worker in the UK is more than twice that of a non-digital tech worker, (£103,000 compared to £50,000).
The productivity gap is growing too, rising from £48,000 to £53,000 over the last five years – further evidence that the digital tech sector is adding significant value to the UK economy.
Gross Value Added (GVA) calculates the value of goods and services produced, subtracting the costs involved in their production. This measure, therefore, gauges the real contribution of individual sectors to the broader economy.
| Non Digital GVA per worker (£k) | Digital GVA per worker (£k) | |
| 2011 | 44 | 92 |
| 2012 | 45 | 92 |
| 2013 | 46 | 93 |
| 2014 | 49 | 97 |
| 2015 | 50 | 103 |
Source: ONS Annual Business Survey/ONS Business Structures Database
Average advertised digital tech salary is £50,663, 44% higher than non-digital
| DIGITAL TECH SALARY | NON-DIGITAL TECH SALARY | |
| 2012 | £44,998 | £33,808 |
| 2013 | £46,965 | £34,816 |
| 2014 | £47,675 | £35,956 |
| 2015 | £49,427 | £35,797 |
| 2016 | £50,663 | £35,155 |
Source: Burning Glass, Tech City UK, 2016
This gap between digital tech and non-digital salaries is not only wide, but it is growing. Since 2012, there has been a 13% increase in the advertised salaries of digital tech jobs, compared with only a 4% increase in those of non-digital jobs. So while in 2012, digital tech salaries were 33% higher than non-digital ones, by last year the gap had widened to 44%.
London has the highest salary, followed by Reading and Edinburgh
| City | Average digital salary |
| London | £61,402 |
| Reading | £52,998 |
| Edinburgh | £52,639 |
| Newcastle | £50,370 |
| Leeds | £49,968 |
| Glasgow | £48,203 |
| Oxford | £47,690 |
| Manchester | £47,478 |
| Bristol & Bath | £47,207 |
| Cambridge | £46,737 |
| Southampton | £46,156 |
| Sheffield | £45,908 |
| Liverpool | £44,534 |
| Brighton | £44,038 |
| Birmingham | £43,586 |
| Nottingham | £43,584 |
| Plymouth | £43,366 |
| Cardiff & Swansea | £43,286 |
| Ipswich | £41,002 |
| Norwich | £40,718 |
| Leicester | £40,017 |
| Bournemouth & Poole | £39,700 |
| Exeter | £38,687 |
| Sunderland | £38,408 |
| Belfast | £37,159 |
| Worcester & Malvern | £36,650 |
| Dundee | £36,059 |
| Middlesbrough | £36,047 |
| Hull | £35,245 |
| Truro and Redruth | £30,501 |
Source: Burning Glass, Tech City UK, 2016
Unsurprisingly, the sector’s highest advertised salaries are within the capital. Hot on its heels are Reading, Edinburgh and Newcastle.
Newcastle & Norwich have experienced impressive salary growth
| TTWA name | SALARY GROWTH BY CLUSTER (2015 – 2016) |
| Newcastle | 14% |
| Norwich | 13% |
| Sheffield | 9% |
| Bournemouth & Poole | 6% |
| Liverpool | 6% |
| Manchester | 5% |
| Birmingham | 5% |
| Leicester | 5% |
Source: Burning Glass, Tech City UK, 2016
Over the past year, most clusters have seen digital tech salaries grow. Newcastle and Norwich have experienced particularly impressive growth.
Highest salaries found for data-centric roles
Data-centric roles offer some of the highest salaries in the sector, with information security roles following close behind. Database architects and business intelligence architects are taking home some of the biggest pay cheques – last year the average advertised salaries for these roles were £67,624 and £62,758 respectively – reflecting the surge in businesses seeking to harness the power of their data.
| Role | Average Advertised Salary |
| Database architect | £67,624 |
| Business Intelligence architect | £62,758 |
| Network Engineer | £60,936 |
| UI/UX Designer | £59,846 |
| Information Security Engineer | £57,996 |
| Data Warehousing Specialist | £57,318 |
| Software Developer | £55,356 |
| Chief Information Officer | £55,136 |
| Computer Systems Engineer | £53,869 |
Source: Burning Glass, Tech City UK, 2016
Newcastle, Sunderland, Nottingham and Hull emerged as the most affordable digital clusters to live and work in
Those with digital tech skills might be starting to find themselves better off in locations they had not previously considered. Salaries may stretch much further in Newcastle, Sunderland or Nottingham than in London, Oxford or Cambridge.
| City | Salary to House Price Ratio |
| Newcastle | 3 |
| Sunderland | 3 |
| Nottingham | 3.1 |
| Hull | 3.2 |
| Liverpool | 3.2 |
| Middlesbrough | 3.2 |
| Sheffield | 3.2 |
| Glasgow | 3.4 |
| Leeds | 3.6 |
| Belfast | 3.9 |
| Manchester | 3.9 |
| Dundee | 4 |
| Birmingham | 4.2 |
| Leicester | 4.2 |
| Cardiff & Swansea | 4.3 |
| Plymouth | 4.4 |
| Ipswich | 4.9 |
| Southampton | 5.3 |
| Edinburgh | 5.6 |
| Norwich | 5.6 |
| Worcester & Malvern | 5.8 |
| Truro & Redruth | 6.6 |
| Bournemouth & Poole | 6.7 |
| Bristol & Bath | 6.7 |
| Exeter | 6.9 |
| Reading | 7.3 |
| Brighton | 9.4 |
| London | 9.4 |
| Oxford | 10.9 |
| Cambridge | 11.2 |
Source: Tech Nation 2017 survey, Tech City UK