UK tech sector sees record rise in employment
The UK tech sector saw a record rise in employment in the last quarter of 2021, as the pandemic-linked drive to digitalisation continues to gather pace.
Research from accountancy giant KPMG found staffing levels increased at the fastest rate on record with firms predicting more jobs and efforts to fill vacancies this year.
Business confidence hit its highest level in 14 years, the study found, despite the prospect of the Omicron variant disrupting the economy.
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However, input costs faced by tech firms increased at the fastest rate on record because of supplier price hikes, input shortages, greater energy and staffing costs.
Going forward, tech businesses are planning expansions, export opportunities and new product investment to support growth this year, despite ongoing concerns that strained supply chains and rising costs could weigh on performance.
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“The UK tech sector faces a balancing act this year: on one hand, demand for digital continues to gather pace, but on the other, tech organisations face significant challenges around talent and supply chain – neither of which will disappear soon,” said Lisa Heneghan, chief digital officer of KPMG in the UK.
“With this in mind, only time will tell whether the sector can maintain current growth levels throughout 2022.
“Despite this uncertainty, it’s fantastic to see that confidence has not been knocked. As UK businesses emerge from the pandemic, I expect to see even more investment in digital, and the tech sector is poised to support these ambitions.
“In addition, most tech organisations have weathered the storm over the last two years and as we see the impact of the pandemic reduce in the coming months the sector’s positive outlook is understandable.”