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South: Key advances needed on the UK digital front

8 August 2016
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Successive British governments have prioritised growing the tech industry as a way to ensure that the UK economy can thrive in an increasingly-digital world. As a result, the UK digital economy, which is worth more than £161 billion and which supports more than 1.5 million jobs, is the largest digital economy as a percentage of GDP in the G20, with an expected growth of 15% next year. But research by Hired, the international job-marketplace firm, in a report called 'Mind the Gap', has pinpointed four key potential UK weaknesses. Moreover, these could be exacerbated by Brexit.

The Hired report identifies four ‘gaps' which would need to be addressed if the UK is to maintain its position at the forefront of the global tech industry.

First, there is a significant skills gap in the key areas of data, security, Python, Ruby, UI and UX. Whether measured by supply and demand, interview requests or job offers, these areas consistently emerged as the skills most coveted by tech firms. Market appetite for these skills is far outstripping supply, with, for example, the demand for security engineers increasing by 234% in the past 18 months alone. 

Second, and particularly with the uncertainty over the Brexit decision, gaps in the supply and demand of vital skills may hold back the UK tech sector’s growth. One in three people working in the UK tech sector comes from another European country. Britain’s position as a digital powerhouse has been dependent on bringing in these kinds of high-skilled workers as a supplement to the country’s home-grown talent; the skills gap will only worsen if the UK can’t attract the best talent, wherever it’s from.

Third, the UK’s global competitiveness against US tech hubs is an area of concern. Average salaries for tech workers in London are substantially lower than in Silicon Valley and New York, which have salaries 38% and 35% higher, respectively, than the UK. 

Finally, there is a worrying trend when looking at the pipeline of tech-savvy students entering the workforce. 74% of tech workers have a degree – a much higher proportion than the national average. However, the number of UK students graduating with computer science qualifications has dropped considerably since 2002. This is in direct contrast to neighbours such as France, which now provides the European market with more computer science graduates than any other country. Given this and the fact that the Hired data revealed that a large number of developers are now self-taught, employers need to ensure that not just university degrees but also passion and commitment are given due consideration in their recruitment process. 

The ‘gaps' make it clear that the UK’s leading position is far from guaranteed. Hired’s report suggests that though the UK has a highly-qualified workforce today, it risks the skills gap widening, with fewer developers and software engineers entering the workplace despite an economy that is hungrier than ever for tech talent. In addition, Brexit, the uncertainty around freedom of movement, and the growing appeal of other global tech hubs in Europe, the US and Asia have further called into question whether the UK will be well-positioned to fill the 750,000 new digital jobs which will open by 2020 and which will have to be filled if the country is ultimately to stay competitive in the global tech economy.  

It is thus imperative that businesses, educational institutions and the Government collaborate closely to ensure that we the UK is addressing this issue and nurturing the talent that will secure the country’s position as a digital leader in the years ahead. Only if this is done, will the UK remain competitive in the global tech marketplace.  

The “Mind the Gap” report can be read at https://hired.com/skills-gap.

 

 


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