Salaries and investment into UK companies are higher than ever as digital continues to fuel UK economy
The UK technology industry continues to be extremely lucrative for its workers, according to the Tech Nation 2017 report from Tech City UK.
It found that tech salaries in the UK are 44 percent higher than those in the wider economy, with the average advertised salary for tech-focused jobs now at £50,663 a year, compared with £35,155 for the average non-digital salary.
There has been a 13 percent increase in the advertised salaries of digital roles since 2012, compared to just four percent for non-digital jobs, highlighting the role of digital in fuelling the growth of the UK economy.
Workers outside of London will also be happy to hear that the capital doesn’t have a monopoly on earning power. Tech salaries in Newcastle, Sheffield and Leeds have grown by over 25 percent in the last five years and most tech clusters throughout the UK have seen wages increase.
And it’s not just salaries that are increasing, investment into UK businesses is also thriving.
The UK’s digital economy is currently generating more new investment than any other continental country, attracting £6.8 billion from investors around the world in 2016. To put that into perspective, France and Germany secured investment of £2.4bn and £1.4bn respectively.
Again, this growth is consistent throughout the UK, as traditional tech clusters such as Cambridge and Bristol through to emerging hubs such as Sunderland and Brighton reaped the rewards.
Indeed, for the first time ever more investment from venture capital and private equity firms went to companies’ headquartered outside of London, attracting 68 percent (£4.6bn) of investment.
“Tech Nation 2017 shows how rapidly the UK’s tech innovation and productivity are gathering momentum,” said Gerard Grech, CEO of Tech City UK. “There are now significant tech hubs all over the UK, attracting both international investment and overseas talent. Tech careers now pay 44 percent more than the national average wage.
“These foundations will be crucial as we prepare to leave the EU. We need to maintain access to skilled workers while doubling down on home grown tech talent. And we need to think big. This report is all about working together on a common vision: the UK as a global leader in tech.”
The report also highlights the record number of M&A deals that took place in 2016, with the largest deal being the £24 billion sale of Cambridge-based Arm Holdings to Softbank of Japan.
Other notable deals include Microsoft’s acquisition of London-based mobile startup SwiftKey for around $250m (£174m), Micro Focus’s £6.6 billion purchase of HPE’s “non-core” software assets and the acquisition of Skyscanner by Chinese travel agent Ctrip.
Speaking to Silicon, director of Ricoh UK Chas Moloney commented: “The continued success of the UK’s tech sector is great news for the economy but businesses have a responsibility to ensure nobody is left behind when it comes to equipping workers with the necessary digital skills to adapt to changing job roles.
“The rise of tech trends like automation and robots in the workplace bring huge benefits which can only be properly integrated if companies invest in improving the digital dexterity of the workforce.
“Creating tailored training schemes and enabling employees at all levels of the organisation to pursue their own individual workstyles is critical for capitalising on the UK’s tech success story.”
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