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

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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

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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

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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

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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

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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

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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%.

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

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Unsurprisingly, the sector’s highest advertised salaries are within the capital. Hot on its heels are Reading, Edinburgh and Newcastle.

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

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Over the past year, most clusters have seen digital tech salaries grow. Newcastle and Norwich have experienced particularly impressive growth.

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

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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

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