London increases share of UK IT workforce

London has accounted for over 40% of new UK IT jobs created so far this year taking the capital city’s contribution to new roles above pre-credit crunch levels.

London has accounted for over 40% of new UK IT jobs created so far this year taking the capital city’s contribution to new roles above pre-credit crunch levels.

According to research from recruitment firm ReThink 41.4% of new IT jobs in the UK were based in London. The only region close to this was neighbouring South East England with a 22.5% share of new jobs created.

In 2008 London accounted for 33.8% of new UK IT jobs. Most other regions recorded a reducing share of new jobs.

A large proportion of London-based IT jobs are in the financial services sector which was hit hardest by the economic slowdown which began with the credit crunch in 2008.

“[The research] shows that London is bouncing back strongest from the recession. This is despite financial services, which is one of the heaviest users of IT skills, being concentrated in London,” said ReThink. The company said demand for IT skills in some areas of finance has surged.

Michael Bennett, director at ReThink, said: “IT departments in the City saw job cuts during the banking crisis but, compared with other business functions, IT has been relatively insulated. Hiring, particularly in insurers and boutique [financial services] firms, has been quite buoyant since then.”

ReThink also said that London has emerged as a major technology hub with companies such as Google expanding in East London.

“The bottom has fallen out of the public sector IT jobs market, but the emergence of London as a tech hub has provided some ballast. This has left some UK regions, which are more dependent on the public sector, struggling to create new technology jobs,” said Bennett.

New IT jobs by geographical region

Region

% of new jobs created  2008 % of new jobs created  2012

London

33.8%

41.4%

South East

23.8%

22.5%

North West

9.2%

7.1%

South West

7.2%

6%

West Midlands

6.7%

4.7%

Yorkshire & Humberside

5.3%

4.9%

East Midlands

4.3%

4.8%

Scotland

3%

2.8%

East Anglia

4.1%

3%

North East

1.2%

1%

Wales

1%

1.5%

Northern Ireland

<1%

0.3%

Source: ReThink

 

 

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