While the general outlook is good in terms of jobs in the UK tech sector, wobbles caused by the imminent general election have led to a slowdown in business activity, according to the latest KMPG/Markit Tech Monitor report.
The UK Business Activity Index has actually been falling since the first quarter of 2014, when it hit a high of 60.5. It dipped to 59.6 by the time Q4 rolled around last year, and then plummeted to 55.7 in Q1 of 2015. This is simply due to the fact that companies are putting off decisions and any moves they might make until the general election is over and done with.
There is good news for the rest of the year, though, with 55 per cent of survey respondents believing they will see a rise in business activity over the next year (with only 7 per cent thinking they’ll witness a fall).
There’s also a more positive outlook when it comes to the tech industry’s plans for hiring new staff – over two-fifths of those surveyed said they were expecting an increase in the amount of employees they’re taking on over 2015.
The report also stated that the number of technology sector jobs has grown by a quarter since 2010, and that’s three times as fast as the overall UK employment market – a pretty impressive spurt of speed for the tech industry. Apparently there are now at least one million tech jobs in this country.
Tudor Aw, partner and head of technology sector at KPMG, commented: “This quarter’s Tech Monitor results continue the theme of a robust and thriving UK tech sector that outstrips the wider UK economy.
“Importantly, the sustained rise in tech business activity that we have seen in recent years has translated to reinvestment in capital expenditure and job hiring, again at a rate that has been much higher than other UK sectors. These results confirm the importance of the tech sector in helping drive growth and employment in the UK.”