New data released today reveals that tech sector roles are growing at the fastest rate ever as firms gear up for a strong 2022.
The KPMG UK Tech Monitor Index has shown that the tech space maintained a confident trajectory in the fourth quarter of 2021, with output expanding at record rates.
The upturn was supported by a further increase in sales following robust customer demand.
Staffing levels at UK tech firms increased at the fastest rate on record in the last quarter amid forecasts of rising business requirements in the year ahead and greater efforts to fill vacancies.
The upward trend in employment was also notably quicker than the UK-wide trend.
As a result, business confidence was more upbeat and underpinned the increase in tech sector employment.
Firms that reported higher business activity often commented on a sustained recovery in market conditions from pandemic-related disruption, and increases in customer demand.
On top of this, new product investment, planned company expansions and export opportunities are all anticipated to support growth over the next year; this is still underpinned by concerns that strained supply chains and rising costs could weigh on performance.
Business activity expanded sharply across the rest of the UK economy, with the rate of growth remaining slightly quicker than that seen in the tech sector.
Monthly data showed that this partly reflected strong gains in the hospitality and leisure sectors during October and November as these sectors benefited from improved client confidence.
However, consumer-facing businesses saw a notable slowdown in momentum during December amid the emergence of Omicron. Data meanwhile highlighted that output growth at tech companies actually accelerated at the end of 2021.
Lisa Heneghan, Chief Digital Officer, KPMG in the UK, said: “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”
“With this in mind, only time will tell whether the sector can maintain current growth levels throughout 2022”, she added.