Positive News for the UK Information Economy

The “Information Economy” as defined by the government includes IT Programming, IT Consultancy, Telecoms and Data Processing.  The total Information Economy workforce is estimated at 1.4m.  Employment growth has been double that for the economy as a whole.  Two thirds of employees hold degrees or other higher education qualifications.

An analysis of the UK Information Economy has recently been published.  It draws on ONS data and looks closely at trends in numbers of enterprises and numbers of employees within the IT sector.

The general picture is very positive.

  • Between 2009 and 2012 the number of Information Economy enterprises rose by 7%
    even as the overall number of enterprises in the UK declined by 0.1%.
  • Just over one quarter (26%) of Information Economy enterprises are less than 2 years
    old compared with around one in six (16%) UK enterprises as a whole.
  • Gross Value Add  for the Information Economy amounts grew by 5% between 2010 and 2011 more
    than double the rate of growth within the economy as a whole (2%) over the period.
  • At £99,000 per head, GVA per worker in the Information Economy is more than double
    the industry average (£47,000).
  • Information Economy workers tend to be more highly educated than average with just
    under two thirds (65%) holding some form of higher award (compared with an
    workforce average of 40%).
  • The Information Economy provides employment to approximately 10% of
    undergraduate leavers and in 2012, 11,100 graduates from full-time courses found
    employment within an Information Economy firm/role.

The total number of workers in Information Economy firms or roles is over 1.4m. IT Consultancy and IT Programming are the largest components accounting for over 0.5m. The number of people working in the Information Economy industries grew 8% over the 2009-12 period – a rate four times that recorded for the workforce as a whole.

 info_economy_workers

The full report published jointly by e-skills, intellect and BCS is available online:
http://www.e-skills.com/research/research-publications/information-economy-economic-estimates/