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UKHotViews
Wednesday 27 July 2022

*UKHotViewsExtra* A tight jobs market could be the tech sector's golden ticket

Unemp vs vacs v2There is no shortage of economic data in circulation at the moment, most of it fairly downbeat. A round of UK economic updates last week on employment, vacancies, wages, inflation and consumer confidence was followed on Tuesday by a gloomy assessment from the International Monetary Fund (IMF) that the UK is set for the slowest growth of the G7 richest countries in 2023. The Bank of England Monetary Policy Committee meets next week and will surely raise interest rates once again.

As the economic storm clouds gather, it is becoming increasingly clear that the UK's labour-intensive economic model of the last decade is unsustainable in the new era of workforce shortage. Even once inflation is brought under control, the UK economy risks a continued period of faltering growth unless it can invest significantly and quickly in both technology and skills.

In our flagship Market Trends and Forecasts report, we observed growth of 9.3% in the UK Software and IT Services (SITS) market during 2021. Furthermore, we expect demand for digital, data and technology services to persist, as the geopolitical and macroeconomic environment pushes technological transformation up the agenda of many end-user organisations. And so, we are forecasting a compound annual growth rate (CAGR) of 5.9% in the UK SITS space through to 2025.

hvxIn this HotViewsExtra article, I explore how the UK's precarious economic situation represents an opportunity for the UK tech sector to deliver - or even exceed - those growth predictions. But to do so, it must navigate its own challenging labour shortages. HotViewsExtra subscribers can read the full analysis here.

And clients of the TechMarketView Foundation Service research programme can access the full Market Trends & Forecasts report here, covering all segments of the SITS market in considerable depth. If you would like to discuss subscription options, please contact Deb Seth.

Posted by: Tania Wilson at 19:09

Tags: markettrends   skills   employment   productivity   MarketForecasts   resilience   macro   marketdata  

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