Introduction to the Sector Data Pack

The role of the Sector Data Pack is to bring together the latest socio-economic and labour market data and present both an up-to-date, and

future view, of the sector and any underlying issues within the area that could impact upon it. Information and feedback collected from

stakeholder consultation (through workshops, meetings, and survey) is also presented and summarised (where available and applicable).

The Data Pack sits below the Sector Skills Plan, with the key findings from the data analysis helping to inform the priorities developed in the

plan. In most instances data has been analysed and presented down to local authority level. In some instances, and even where local authority

data is available, it has not been presented in the data pack due to issues of unreliability and small sample sizes. This is particularly the case

with data from the Annual Population Survey and the Annual Survey of Hours and Earnings.

Throughout the Data Pack findings are also presented for the areas of Lincolnshire (county), Greater Cambridge and Greater Peterborough

(GCGP) Local Enterprise Partnership (LEP), Greater Lincolnshire LEP (GLLEP), and South East LEP (SELEP). These comparator areas were

agreed in consultation with the Digital Tech sector group and New Anglia LEP officers.

Introduction to and Definition of the Digital Tech Sector

The Digital Tech economy recognises the primary job roles involved in digital tech industries, such as computer programming and digital games

design alongside the enabling role digital tech occupations make with traditional (non-digital) industries- such as finance and culture and

tourism.

The New Anglia Local Enterprise Partnership has previously prioritised the ICT Sector as one of five high impact sectors within its Strategic

Economic Plan (SEP) (2014)¹. The SEP defines a series of major economic targets (by 2026), which includes a net increase of jobs growth by

95,000, 10,000 new businesses created and an overall increase to productivity for the region by Gross Value Added (GVA) (from £36,000 to

£40,000). These high impact sectors have been prioritised as those that demonstrate the greatest opportunity for economic growth, therefore

underpinning the SEP’s headline targets.

Initially defined as ‘ICT’, the LEP supported the development of business intelligence through an ICT partnership, initially hosted by the Suffolk

Chamber of Commerce (as the ‘IP Network’) and the commissioning of research to ‘map’ the sector’s key businesses and gather evidence on

the opportunities, and challenges that the ICT sector faces².

Partnership development based on the evidence findings of the mapping work highlighted the growing recognition of the signifi cance of the

sector economically, including its employment, business and jobs density being higher than previously assessed. This analysis was

¹ New Anglia LEP Strategic Economic Plan (2014), New Anglia LEP

² Mapping New Anglia’s ICT Sector (2015), Regeneris

consolidated further with the Tech Nation Report- Transforming UK Industries (2016)³, which highlighted that both Ipswich and Norwich were

part of a list of 27 nationally significant tech business clusters.

The Tech Nation report used defined indicators that included jobs density, economic performance and the extent to which key local

organisations are effectively engaged with local businesses. Significantly, the Tech Nation report positioned industries, such as

telecommunications and networking and hardware development alongside a range of other industries including app and software development,

digital media and gaming- to promote the importance of the Digital Tech economy.

The Digital Tech economy recognises the primary job roles involved in digital tech industries, such as computer programming and digital games

design alongside the enabling role digital tech occupations make with traditional (non-digital) industries- such as finance and culture and

tourism. Accordingly, both the former Department for Business Innovation & Skills (BIS) and the Department for Culture, Media and Sport

(DCMS) identified the importance of addressing labour and skills shortages for key roles within the primary digital tech market and also the

adoption of digital capability across the wider economy, to drive innovation and market competitiveness⁴.

For the purposes of this work Digital Tech, rather than ICT, has been adopted, which aligns well with the Tech Nation context and builds on the

previous ICT sector mapping and New Anglia Local Enterprise Partnership supported research. A complete breakdown of the Standard

Industrial Classification (SIC) categories that complete the scope of the Digital Tech definition can be found in the appendices along with

information on how this definition compares with SICs used for the previous ICT sector mapping analysis and the Tech Nation 2016 report, and

the framework used by the Department for Culture, Media and Sport (DCMS). Important to the definition is a framework which:

Captures in its entirety the SICs used for the previous ICT sector mapping analysis and the Tech Nation 2016 report;

Includes additional SICs that align with the Department for Culture, Media and Sport (DCMS) framework for digital technology; and

Based on stakeholder feedback includes a number of SICs including digital media, publishing, PR and communications activities, which

reflects the increasing adoption of digital methods and subsequent skills needed, for important business activities across the New Anglia

region. For these additional SICs the overall contribution evidenced towards key indicators such as jobs and employment share have

been balanced using a standard percentage. This complements the Tech Nation methodology of equating digital economy activity

across industries previously considered as being on the periphery.  

It is important to note that the process for categorisation of businesses by SIC is somewhat unregulated and is largely dependent on the initial

registration a business makes with Companies House upon business start-up (and on subsequent annual returns). There is therefore an

inherent risk with using SIC analysis as the sole methodology for assessing the scale of an industrial sector and subsequent evidence based

action planning. For the purposes of the Digital Tech Skills Plan, a methodology has been developed that balances SIC analysi s of secondary

data alongside primary qualitative data obtained through key partner focus groups and semi-structured interviews.  

³ Tech Nation- Transforming UK Industries (2016), Tech Nation

⁴ Digital Skills for the UK Economy (2016), BIS & DCMS

Key Findings from the Data Analysis:

The Digital Tech sector in New Anglia was worth approximately £1.3bn in 2015

This £1.3bn equates to just below 4 per cent of New Anglia’s economy total value, which is less than its LEP comparators and

nationally, suggesting that the sector is underperforming

Growth in value in the sector has been in line with that of nationally, but again below that of comparator areas

16,600 people were employed in the sector in 2015, around 2.5 per cent of the total workforce, which again is below LEP comparator

areas and nationally

Digital Tech sector employment within New Anglia is concentrated in Suffolk Coastal, Norwich, and Ipswich

Growth in employment has again been solid but lags behind that of its neighbours and nationally

Some local authority areas within New Anglia have experienced reductions in Digital Tech sector employment

New Anglia’s Digital Tech sector Location Quotient is below that of its two main comparator LEPs and has fallen since 2010

Suffolk Coastal has a high LQ of 1.6 but this has fallen over the last 5 years

The decline in part-time employment in the New Anglia Digital Tech sector has been more pronounced than nationally

At the same time, growth in full-time employment has been just above that of nationally

There are 3,425 Digital Tech businesses in New Anglia and unlike employment, there is a good spread of these businesses across the

area

The proportion of New Anglia residents with higher level qualifications is increasing but remains below national averages

Level 4 qualifications and above within the New Anglia Digital Tech sector are also below the national average

Growth in Digital Tech sector apprenticeships has in the main been flat since 2011 but there has been a shift in apprenticeship delivery

more in line with the sector mix locally

Forecasts for employment growth in the sector are fairly flat, however, at the same time, management positions, and professional and

associate professional occupations, are all set to grow in importance over time and fuel demand for higher skills within the sector and

area.

Digital Tech sector’s contribution to the local economy

The Digital Tech sector contributes the following

to the New Anglia LEP economy:

4.7%

Nearly 4 per cent of total economic value

(Gross Value Added or GVA) generated,

which is around £1.3bn of the £35.5bn

3.6%

generated by the New Anglia economy in

2015.

2.5 per cent of total employment

(655,000), equating to 16,600 employees

2.5%

in 2015.

Nearly 5 per cent of businesses, over

3,400 of the 72,900 businesses in New

Anglia.

Sources: Sub-regional GVA; Business Register

and Employment Survey, UK Business Counts;

all Office for National Statistics

GVA

Employment

Businesses

Please note that values for GVA are based on the Information and Communication Sector, with values for employment

and businesses based on the SIC codes detailed in the appendices.

Digital Tech sector’s contribution to growth in the local economy (2010=100)

Growth in GVA in the sector has been higher

130

than that of total growth in the New Anglia

economy, whilst growth in business numbers

has been roughly in line with that of total

120

business numbers. The stand out element here

is the fluctuations in employment in the Digital

Tech sector. Based on feedback from the Office

for National Statistics on this issue it appears

that the 2014 totals overestimated employment

110

in the sector, whereas 2015 estimates are in fact

closer to reality. The shift was due to the

sampling of two businesses in the sector who

went through relatively unique circumstances

100

(one moved employment into another industry

between 2014-15, whereas the other went

through a restructure which saw employment

numbers allocated differently in 2014 than in

2015).

2010

2011

2012

2013

2014

2015

2016

Digital Tech GVA

Digital Tech Employment

Sources: Sub-regional GVA; Business Register

and Employment Survey, UK Business Counts; all

Digital Tech Business

Total GVA

Office for National Statistics

Total Employment

Total Business

The Digital Tech

sector provided nearly

4% of New Anglia’s

total economic value

Proportion of total GVA produced by Digital

Tech sector across comparator areas, 2015

in 2015

New Anglia

3.6%

Norfolk

2.4%

In response to the question

Suffolk

4.9%

of sectoral significance then

the answer is both yes and

no.

Lincolnshire

2.1%

Despite South East LEPs Digital Tech sector

generating more than double that of New Anglia’s,

GCGP

6.0%

relative to the size of the total economy then the sector

generates roughly the same amount i.e. 3 to 4 per

GLLEP

1.7%

cent.

SELEP

4.0%

In the Greater Cambridge & Greater Peterborough

LEP then the sector generates much more of total

East of England

5.4%

economic value at around six per cent.

However, when we look at the Digital Tech sector’s

United Kingdom

6.5%

contribution nationally then all areas are

underperforming to a certain extent.

Sources: Sub-regional Gross Value Added (GVA), Office for

National Statistics

Economic growth in

Change in Digital Tech sector GVA across

New Anglia’s Digital

comparator areas (2010 = 100)

Tech sector has been

170

in line with national

160

growth

Growth in GVA of the

150

Digital Tech sector in

New Anglia has in the

140

main been above the

national average

between 2010 and 2015.

130

Despite this, figures for

2015 show that five year

growth across the sector

120

at both New Anglia and

UK has been

Growth in sectoral GVA across comparator LEP areas

110

has been much higher, in particular in the Greater

Lincolnshire LEP area though this is obviously

countered to a certain extent by the sector being much

100

smaller in that area.

Sources: Sub-regional Gross Value Added

(GVA), Office for National Statistics

2010

2011

2012

2013

2014

2015

New Anglia

Norfolk

Suffolk

Lincolnshire

GCGP

GLLEP

SELEP

East of England

United Kingdom

Digital Tech sector

employment in New

Anglia is concentrated

Employment in the Digital Tech sector across New Anglia, 2015

in Suffolk Coastal,

Norwich and Ipswich

4,000

3,500

3,000

2,500

Employment in the

Digital Tech sector in

2,000

New Anglia is

concentrated in the local

1,500

authority areas of Suffolk

1,000

2% Coastal, Norwich, and

Ipswich.

500

Suffolk Coastal local authority area is home to

Adastral Park, resulting in it having the highest

employment number. It is closely followed by

Norwich and then Ipswich, the two further

centres of activity for the sector.

Suffolk Coastal also has the highest proportion

of its total employment provided by the Digital

Tech sector.

Digital Tech Employment

% Digital Tech Employment

Source: Business Register and Employment Survey, Office for National Statistics

Change in Digital Tech sector employment

across New Anglia, 2010 - 2015

-40% -30% -20% -10%

10%

20%

30%

40%

50%

Breckland

North Norfolk

Norwich

Below LEP level, and looking at changes

in employment at local authority level,

South Norfolk

then there are some very encouraging

figures with many areas experiencing

Broadland

growth rates above that of the national

King`s Lynn and West Norfolk

average.

Of particular note is Norwich which has a

Great Yarmouth

large number of people employed in the

sector and had above average growth

over the five year period in question.

Waveney

Babergh

Source: Business Register and Employment

Survey, Office for National Statistics

Ipswich

Mid Suffolk

Suffolk Coastal

St Edmundsbury

Forest Heath

Top growth Digital Tech sub sectors with 100 employees or more

% of total

Change in

Industry Sector Code

Industry Sector Name

Employment DigiTech sector

employment

2010 - 2015

59112

Video production activities

100

2175%

61200

Wireless telecommunications activities

200

1392%

63120

Web portals

100

303%

59200

Sound recording and music publishing activities

100

223%

61100

Wired telecommunications activities

100

211%

58142

Publishing of consumer, business and professional journals and periodicals

200

204%

59113

Television programme production activities

100

134%

63990

Other information service activities nec

100

116%

58110

Book publishing

100

100%

58290

Other software publishing

100

69%

Source: Business Register and Employment Survey, Office for National Statistics

Digital Tech sector location quotients

across comparator areas, 2015

0.2

0.4

0.6

0.8

0.45

Norfolk

Location quotients (LQs) are a

0.46

useful way of showing a sectors

importance to the local economy

0.64

relative to the national picture. The

Suffolk

analysis presented here uses

0.65

employment with an LQ above 1

showing a higher concentration than

0.41

nationally, and an LQ of below than

Lincolnshire

0.43

1 a lower concentration.

2015

2010

As with employment numbers then

0.54

New Anglia remains below its

New Anglia LEP

0.55

nearest Digital Tech competitors of

South East LEP and Greater

Cambridge Greater Peterborough

0.94

GCGP

(GCGP) in terms of the sectors

0.90

LQ. It is also worth noting the fall in

New Anglia’s LQ over time, albeit

0.34

small, compared to the rises in

GLLEP

LQs for the South East LEP and

0.36

GCGP.

0.71

SELEP

0.63

Source: Business Register and Employment Survey, Office

for National Statistics

Digital Tech sector location

quotients across New Anglia, 2015

0.5

1.5

0.34

Breckland

0.29

0.54

Broadland

0.56

0.31

Great Yarmouth

0.48

With the presence of Adastral Park then Suffolk

0.21

King`s Lynn & West Norfolk

Coastal is the only local authority area in New

0.28

Anglia with a Digital Tech sector location quotient

0.23

North Norfolk

above 1. This is tempered by the fact that its LQ

0.21

has fallen between 2010 and 2015, though this is

0.76

Norwich

not the only local authority district area across

0.70

2015

2010

New Anglia to experience this.

0.41

South Norfolk

0.42

0.65

Babergh

Source: Business Register and Employment

0.55

Survey, Office for National Statistics

0.40

Forest Heath

0.57

0.58

Ipswich

0.57

0.45

Mid Suffolk

0.44

0.38

St Edmundsbury

0.44

1.60

Suffolk Coastal

1.72

0.24

Waveney

0.17

Digital Tech sub sectors (100+ employees) that supply a greater

proportion of Digital Tech sector employment than UK average

% of total

Index

Industry Sector Code

Industry Sector Name

Employment

DigiTech sector

(UK=1)

employment

95120

Repair of communication equipment

500

8.9

59140

Motion picture projection activities

300

3.3

59112

Video production activities

100

2.5

26110

Manufacture of electronic components

300

2.1

58142

Publishing of consumer, business and professional journals and periodicals

200

2.0

58130

Publishing of newspapers

200

2.0

61900

Other telecommunications activities

4,000

24%

1.9

59200

Sound recording and music publishing activities

100

1.7

46520

Wholesale of electronic and telecommunications equipment and parts

700

1.4

58190

Other publishing activities

100

1.3

74100

Specialised design activities

300

1.2

26301

Manufacture of telegraph and telephone apparatus and equipment

100

1.2

26120

Manufacture of loaded electronic boards

100

1.2

58110

Book publishing

100

1.2

95110

Repair of computers and peripheral equipment

500

1.1

Source: Business Register and Employment Survey 2015, Office for National Statistics

Babergh

91%

Breckland

86%

14%

Digital Tech sector

Broadland

88%

11%

employment by full-time /

Forest Heath

85%

14%

part-time split across

Great Yarmouth

86%

14%

Ipswich

86%

14%

New Anglia, 2015

King`s Lynn and West Norfolk

84%

16%

Of particular note here is the local authority area

of Suffolk Coastal (the home of Adastral Park)

Mid Suffolk

85%

15%

with its employment structure geared towards

North Norfolk

81%

19%

full-time more than any other local authority area

in New Anglia. At the opposite end of the scale

Norwich

85%

16%

is North Norfolk with nearly a fifth of its 300

people employed in the sector working part-time.

South Norfolk

85%

15%

St Edmundsbury

86%

13%

Source: Business Register and Employment

Survey, Office for National Statistics

Suffolk Coastal

93%

Waveney

83%

17%

Full-time

Part-time

-80%

-40%

40%

80%

120%

Breckland

Change in Digital Tech

North Norfolk

sector full-time and part-

Broadland

South Norfolk

time employment across

Norwich

Full-time

New Anglia, 2010-2015

King`s Lynn and West Norfolk

Part-time

In contrast to the national and LEP level picture,

Great Yarmouth

at local authority level across New Anglia then

there are two instances of where part-time

employment has actually grown between 2010

and 2015 most notably Norwich being one of

Waveney

those areas.

Babergh

Unsurprisingly those areas which have

experienced declines in full-time employment

Mid Suffolk

are also those that have experienced declines in

total employment in the sector.

Ipswich

St Edmundsbury

Source: Business Register and Employment

Suffolk Coastal

Survey, Office for National Statistics

Forest Heath

100%

Workplace Digital Tech

New Anglia LEP

28%

32%

31%

Norfolk

28%

29%

10%

33%

employment 2011 by broad

Suffolk

27%

35%

29%

Standard Occupational

Classification (SOC) across

GCGP

29%

38%

10%

23%

comparator areas

GLLEP

28%

23%

10%

39%

Analysis of higher level Standard Occupational

SELEP

30%

28%

33%

Classifications that contain those lower level Digital Tech

sector occupations (detailed in appendix 3 on page X)

hints at some distinct differences in the structure of

employment across comparator areas. New Anglia LEP

East of England

29%

35%

10%

26%

appears to be more geared towards the Electrical and

Electronic Trades associated with the sector than

nationally whereas as Greater Cambridgeshire Greater

England

31%

36%

10%

22%

Peterborough LEP has a greater proportion of IT and

Telecommunications Professionals.

113 Functional Managers and Directors

213 Information Technology and Telecommunications Professionals

Source: 2011 Census, Office for National Statistics

313 Information Technology Technicians

524 Electrical and Electronic Trades

100%

Breckland

32%

19%

43%

Broadland

26%

31%

33%

Workplace Digital Tech

Great Yarmouth

28%

18%

44%

employment 2011 by broad

King`s Lynn and West Norfolk

26%

17%

10%

48%

Standard Occupational

North Norfolk

32%

20%

41%

Norwich

27%

40%

13%

21%

Classification (SOC) across

South Norfolk

31%

29%

30%

New Anglia

Babergh

32%

31%

29%

These differences in the structure of employment in the

Forest Heath

31%

22%

12%

35%

sector become even more apparent when looking at the

local authority areas that make up New Anglia. For

Ipswich

26%

37%

11%

26%

example, Suffolk Coastal and Norwich are particularly

Mid Suffolk

34%

25%

34%

geared towards IT and Telecommunications

Professionals.

St Edmundsbury

34%

26%

32%

Source: 2011 Census, Office for National Statistics

Suffolk Coastal

18%

53%

22%

Waveney

27%

20%

44%

113 Functional Managers and Directors

213 Information Technology and Telecommunications Professionals

313 Information Technology Technicians

524 Electrical and Electronic Trades

80%

85%

90%

95%

100%

Norfolk

92%

Suffolk

92%

Digital Tech sector business

Lincolnshire

93%

numbers by size across

comparator areas, 2016

New Anglia LEP

92%

Source: UK Business Counts, Office for

GCGP

91%

National Statistics

GLLEP

93%

SELEP

94%

At LEP and County level then there is very little

to choose between areas in terms of the make-

up of businesses by employee numbers.

East of England

93%

However, at local authority level then both

Norwich and Ipswich in particular stand out, with

10 per cent of businesses employing between

England

92%

10 and 49 people. Norwich too has the largest

percentage of businesses employing between

No. of employees

0-9

10-49

50-249

250+

50 and 249 people. Please note that at Local

Authority level that businesses employing more

80%

85%

90%

95%

100%

than 250 people are not reported due to their

Babergh

94%

very small numbers and resulting disclosive

Breckland

94%

nature.

Broadland

95%

Forest Heath

92%

Great Yarmouth

82%

12%

Digital Tech sector business

Ipswich

88%

10%

numbers by size across New

King`s Lynn & West Norfolk

93%

Mid Suffolk

96%

Anglia, 2016

North Norfolk

96%

Source: UK Business Counts, Office for

Norwich

87%

10%

National Statistics

South Norfolk

95%

St Edmundsbury

90%

Suffolk Coastal

92%

Waveney

96%

0-9

10-49

50-249

-10% -5%

10%

15%

20%

25%

30%

35%

40%

Great Yarmouth

Breckland

Change in Digital Tech

South Norfolk

business units across

North Norfolk

New Anglia, 2010 -

Broadland

2016

Norwich

Below the New Anglia geography then we can

observe some very different fortunes in business

King`s Lynn and West Norfolk

growth across the local authorities. However,

please note the small bases for measuring

change here. Forest Heath in particular, has

seen business unit numbers increase by 33%

Mid Suffolk

but from a base of around 95. This is still

surprising given that employment fell over

roughly the same period.

Suffolk Coastal

The large employment areas of Norwich and

Babergh

Ipswich have both performed well but worth

noting the fall in business unit numbers in

Waveney

Suffolk Coastal.

Sources: UK Business Counts, Office for

St Edmundsbury

National Statistics

Ipswich

Forest Heath

Digital Tech sector wages - Median gross annual pay all employees (UK)

£39,130

Digital Tech (average median value)

(6%)

Figures in brackets

£37,065

denote percentage

change between 2014

and 2016

£26,597

IT engineers (5245)

(14%)

£23,409

£32,681

Telecommunications engineers (5242)

(4%)

£31,348

£28,376

IT user support technicians (3132)

(2%)

£27,922

2016

£27,905

IT operations technicians (3131)

(4%)

£26,739

2014

£36,896

IT and telecommunications professionals n.e.c. (2139)

(-5%)

£38,894

£30,000

Web design and development professionals (2137)

(5%)

£28,445

£39,771

Programmers and software development professionals (2136)

(1%)

£39,362

£44,226

IT business analysts, architects and systems designers (2135)

(8%)

£41,028

£47,937

IT project and programme managers (2134)

(2%)

£46,970

£47,020

IT specialist managers (2133)

£43,540

(8%)

£69,026

Information technology and telecommunications directors (1136)

(15%)

£60,062

£28,247

Information technology technicians (313)

Source: Annual Survey

(4%)

£27,211

of Hours and Earnings,

£41,380

Office for National

Information technology and telecommunications professionals (213)

(3%)

£40,053

Statistics

Digital Tech sector wages - Median gross annual pay full time employees (UK)

£39,989

Digital Tech (average median value)

(4%)

Figures in brackets

£38,413

denote percentage

change between 2014

and 2016

£26,901

IT engineers (5245)

(0%)

£26,960

£32,702

Telecommunications engineers (5242)

(4%)

£31,474

£28,830

IT user support technicians (3132)

(1%)

£28,580

2016

£28,813

IT operations technicians (3131)

(3%)

£27,905

2014

£39,253

IT and telecommunications professionals n.e.c. (2139)

(-1%)

£39,652

£30,392

Web design and development professionals (2137)

(5%)

£29,026

£40,687

Programmers and software development professionals (2136)

(1%)

£40,137

£44,832

IT business analysts, architects and systems designers (2135)

(7%)

£41,837

£48,536

IT project and programme managers (2134)

(2%)

£47,648

£47,768

IT specialist managers (2133)

(6%)

£44,858

£71,161

Information technology and telecommunications directors (1136)

(10%)

£64,469

£28,831

Information technology technicians (313)

(2%)

Source: Annual Survey

£28,288

of Hours and Earnings,

£42,515

Office for National

Information technology and telecommunications professionals (213)

(4%)

£40,874

Statistics

Information and Communication Industry Workplace

Qualifications across comparator areas, 2011

New Anglia LEP

10%

14%

16%

50%

Qualification levels in the

Norfolk

11%

17%

18%

44%

sector (noting again that the

Suffolk

12%

15%

55%

Information and

Communication industry is a

broad approximation of the

Lincolnshire

12%

19%

18%

40%

sector) in New Anglia compare

favourably with those regionally

and some comparator LEP

areas. However, when

GCGP

12%

13%

58%

compared with Greater

GLLEP

13%

19%

17%

39%

Cambridgeshire and Greater

Peterborough LEP and

SELEP

14%

18%

17%

41%

nationally then New Anglia falls

short of those with level 4

qualifications and above.

East of England

11%

14%

15%

51%

Source: 2011 Census, Office

for National Statistics

England

3% 9%

12%

14%

57%

No qualifications

Level 1 qualifications

Level 2 qualifications

Level 3 qualifications

Level 4 qualifications and above

Apprenticeships and other qualifications

There has been a

shift in apprenticeship

delivery more in line

Digital Tech Apprenticeships

with the Digital Tech

350

sector mix locally

300

250

What is initially

200

apparent from this

data is the reduction

100

150

in IT Application Specialist course

135

starts, and a corresponding increase in

105

100

IT, Software, Web & Telecoms

155

Professional. Also, Social Media and

Digital Marketing appears to be a

100

relatively new course, and growing.

2011/12

2012/13

2013/14

2014/15

Social Media and Digital Marketing

Providing Financial Services

Marketing

IT, Software, Web & Telecoms Professional

IT Application Specialist

Design

Creative and Digital Media

Source: Skills Funding Agency Data Cube

Digital Tech sector vacancies across New Anglia,

500

1,000

1,500

2,000

2,500

3,000

3,500

Jan 2012 - Dec 2016

Norwich

According to the Labour Insight Jobs tool, then

Ipswich

there were 10,821 postings for the sector in New

Anglia between Jan. 1, 2012 and Dec. 31, 2016.

St. Edmundsbury

A further 1,521 postings had the potential to be

within the sector but a final judgement could not

Forest Heath

be made on these due to their unspecified or

unclassified nature.

Suffolk Coastal

The definition for the Digital Tech sector used in

South Norfolk

this exercise is wider than that previously defined

but it still provides us with some useful

Breckland

information on vacancy numbers and types.

Great Yarmouth

The definition captures the following industry and

sectors: Information & Communication;

Kings Lynn and West Norfolk

Advertising and market research; Other

professional, scientific and technical activities;

Waveney

Creative, arts and entertainment activities;

Libraries, archives, museums and other cultural

Mid Suffolk

activities; Repair of computers and personal and

household goods.

Babergh

Please note that some caution needs to be

North Norfolk

applied to this data as results may reflect the way

different sectors recruit rather than real

Broadland

differences in the number of jobs.

Source: Labour Insight Jobs, Burning Glass Technologies

100

200

300

400

500

600

Marketing associate professionals (3543)

Authors, writers and translators (3412)

Business sales executives (3542)

Sales and retail assistants (7111)

Sales related occupations n.e.c. (7129)

Programmers and software development professionals (2136)

Telephone salespersons (7113)

Other administrative occupations n.e.c (4159)

Market research interviewers (7215)

Web design and development professionals (2137)

Sales accounts and business development managers (3545)

Customer service occupations n.e.c (7219)

Quantity surveyors (2433)

Graphic designers (3421)

Photographers, audio-visual and broadcastign equipment operators (3417)

IT business analysts, architects and system designers (2135)

Digital Tech sector

Physiotherapists (2221)

vacancies by

Marketing and sales directors (1132)

Call and contact centre occupations (7211)

occupation, Jan

Managers and proprietors in other services n.e.c. (1259)

2012 - Dec 2016

Financial accounts managers (3538)

IT user support technicians (3132)

Source: Labour Insight Jobs, Burning Glass Technologies

Forecasts for change in Digital Tech employment, New Anglia

120

The data presented in this chart is from the

East of England Forecasting Model (EEFM)

and the UKCES Working Futures data (WF).

In each case a Digital Tech sector has been

110

approximated from the sector splits available

in each model. In the case of the East of

England Forecasting Model then ‘Publishing

& broadcasting’, ‘Telecoms’, and ‘Computer

100

related activity’ have been summed to arrive

at a Digital Tech sector. For the Working

Futures data then ‘Media’ and ‘Information

technology’ have been summed. In both

cases, and if we look beyond the 2014-2015

dip in employment in the Working Futures

Digital Tech sector (which could be a result

of the aforementioned SIC code changes

described by the Office for National

Statistics) then both models forecast fairly

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

flat levels of overall employment in the

sector. It is worth noting at this stage then

Publishing & broadcasting (EEFM)

Telecoms (EEFM)

neither set of figures take into account New

Computer related activity (EEFM)

Digital Tech (EEFM)

Anglia LEPs growth ambitions.

Media (WF)

Information technology (WF)

Sources: East of England Forecasting Model,

Cambridge Econometrics; UKCES Working

Digital Tech (WF)

Futures 2014 - 2024

Occupational composition of employment in New Anglia’s

Digital Tech sector over time

100%

Management positions, professional

and associate professional

12%

10%

occupations are all set to maintain

80%

the bulk of the Digital Tech sector

13%

employment and grow in importance

23%

22%

over time.

60%

22%

21%

At the same time, skilled trade and

administrative occupations are set

40%

to decline.

38%

39%

37%

A similar pattern can be observed if

33%

30%

we look at the same results for the

20%

sectors of Media and Information

Technology used to create the

15%

16%

13%

14%

Digital Tech sector.

2004

2009

2014

2019

2024

Source: UKCES Working Futures 2014 - 2024

Elementary occupations

Process, plant and machine operatives

Sales and customer service

Caring, leisure and other service

Skilled trades occupations

Administrative and secretarial

Associate professional and technical

Professional occupations

Managers, directors and senior officials

11%

10%

80%

Information Technology

19%

100%

10%

11%

10%

80%

13%

44%

13%

11%

19%

11%

60%

12%

18%

60%

15%

Media

29%

40%

27%

45%

44%

40%

39%

36%

2014

20%

Process, plan

17%

19%

20%

Caring, leisur

13%

14%

15%

16%

Administrative

12%

Professional

2004

2009

2014

2019

2024

2004

2009

2014

2019

2024

Elementary occupations

Process, plant and machine operatives

Elementary occupations

Sales and customer service

Caring, leisure and other service

Sales and customer service

Skilled trades occupations

Administrative and secretarial

Skilled trades occupations

Associate professional and technical

Professional occupations

Associate professional and technical

Managers, directors and senior officials

19%

60%

18%

Information

40%

45%

44%

Technology

39%

36%

20%

13%

14%

15%

16%

2004

2009

2014

2019

2024

Source: UKCES Working Futures 2014 - 2024

Elementary occupations

Process, plant and machine operatives

Sales and customer service

Caring, leisure and other service

Skilled trades occupations

Administrative and secretarial

Associate professional and technical

Professional occupations

Managers, directors and senior officials

Digital Tech Replacement and

Expansion Demand by Occupation

-1,000

1,000

3,000

5,000

7,000

All occupations

Science, research, engineering and

Given the baseline projection of a flat

technology professionals

level of employment growth seen in the

previous section then the net

requirement of posts to be filled across

the sector is created totally by

replacement demand i.e. people leaving

Corporate managers and directors

or retiring from the workforce. Between

2014 and 2024 then there will be close

to 6,000 positions created through

retirement that will need filling.

Business and public service associate

However, if we go below the ‘All

professionals

occupations’ element and have a look

at the top five occupations (based on

total net requirement of jobs over the

period 2014-2024) in the sector then we

Culture, media and sports occupations

can see that there are elements of

expansion demand despite the

projected no change in total

Business, media and public service

Source: UKCES Working Futures 2014 - 2024

professionals

Expansion demand

Replacement demand

Net requirement

50%

Replacement and

40%

Expansion Demand by

30%

Occupation

20%

The following chart displays the same

10%

information, but this time replacement and

expansion demand are displayed as

percentages of the total employment by

occupation in the sector in 2014. This

helps to give a sense of churn within the

-10%

sectors workforce over the next decade.

-20%

Source: UKCES Working Futures 2014 - 2024

All

Science,

Corporate

Business

Culture,

Business,

occupations research,

managers

and public

media and

engineering

and directors service

sports

public

and

associate

occupations service

technology

professionals

Expansion demand

Replacement demand

Net requirement

Replacement and Expansion Demand by Qualification, 2014 - 2024

Please note that the Working Futures data

-1,000

1,000

2,000

3,000

4,000

5,000

uses the following breakout of qualification

levels:

QCF 7-8

QCF8 - Doctorate

QCF7 - Other higher degree

QCF 4-6

QCF6 - First degree

QCF5 - Foundation degree; Nursing;

QCF 3

Teaching

QCF4 - HE below degree level

Expansion Demand

QCF3 - A level & equivalent

QCF 2

QCF2 - GCSE (A-C) & equivalent

Replacement Demand

QCF1 - GCSE (below grade C) &

equivalent

QCF 1

No Q - No Qualification

Source: UKCES Working Futures 2014 - 2024

No Qual

The UKCES Working Futures data also enables us to consider levels of future replacement and expansion demand in terms of the

levels of qualifications that will be leaving and required in the workforce as it changes over time. As we can see from the chart, positive

replacement and expansion demand within the Digital Tech sector is going to be dominated by the demand for a first degree lev el of

qualification.

No Qual

17%

Digital Tec

ation Level

No Qual

17%

13%

QCF 1

QCF 2

44%

59%

QCF 3

16%

No Qual

17%

13%

QCF 1

Source: UKCES Working Futures 2014 - 2024

QCF 2

44%

59%

QCF 3

ge. If we break this target down, based on employment in each

The TechEast target of 5,000 jobs includes job creation in Cambrid

16%

of TechEast’s constiuent areas, then the target for New Anglia comes out at 2,237 jobs by 2020. If we

push that jobs target

forward to 2024, bringing it into line

with the Working Futures data we are using to estimate replacement and expansion demand,

then this target reaches approximately 4,500 jobs (please note that in total target calculations

this figure is rounded to the nearest

10%

QCF 7-8

thousand i.e. 4,000). Given that forecasts for employment in the sector show that growth will be in those jobs with higher level

qualifications (QCF 4 and above), there will be less roles in lower qualification roles, and we can assume that any additional job

2014

2024

creation in the sector will be in those higher skilled roles as well.

Key findings from stakeholder consultation:

Key Issues/Challenges

The feedback we have had from SMEs within the Digital Tech sector is that the main demand for recruitment comes at graduate level,

with most employers favouring graduates with around 2 years of experience. There is some reticence to take on newly qualified

graduates with employers recognising employability and competency as being as equally important as a qualification;

Therefore, more needs to be done to ensure employability is developed through schools, FE colleges and University. UEA, NUA and

UCS have schemes in place that could be developed further through school engagement;

The retention of talent (graduates) is a challenge, with Norwich in particular more likely to see graduates leave the area for employment

elsewhere (particularly London). Norwich has a strong digital creative presence and the recent activity to raise the profile of the sector

(SyncNorwich etc) needs to be capitalised on by profiling the depth and value of the sector and the careers it offers. Ipswich’s presence

in telecoms & software engineering (at Adastral Park) and the Innovation Martlesham activity are key drivers for competitive advantage

for the region too and the ‘place marketing’ strategy for the area needs to make careful reference to the skills supply and offer for start-

ups, growing SMEs and inward investment. There is also a strong need to engage with schools to inform the career choices of young

people on this basis;

The FE sector and independent training base has great potential to collaborate through a joined-up offer but from an employer

perspective their profile is relatively low, with businesses more likely to train internally or seek technical training outsi de of the area.

Pursuing greater flexibility of the adult skills budget could enable a far more responsive post-16 skills response, with the Local

Authorities able to influence the match between training provision and need; and help the skills offer become more accessible to SMEs;

Developing a leadership and ownership function to take forward the skills strategy is of paramount importance- given the need to

represent the demands of the industry and engender a more joined-up and responsive skills offer. Ownership that demonstrates the

investment the sector is prepared to make in skills can act as an important catalyst for extra resources linked to skills reform and

technical excellence - such as highlighted in the Industrial Strategy and made available through New Anglia LEP’s Skills Deal

programme.

Key Skills Shortages

Multi-application software design/language coding;

Cloud based platform enterprise architecture and development;

AWS and Azure- cloud based transitioning and development;

App development for mobile solutions;

Digital marketing- both ‘soft’ and technical skills;

Technical design skills- with a focus on digital capability (and not graphic design). Particularly UX design;

IT security- data loss prevention;

Business analysts- behaviour driven design, problem solving skills.

Apprenticeships

SMEs within the sector indicate a willingness to consider apprenticeship recruitment in the future but are concerned about the cost and

time implications of apprenticeship recruitment;

Overall apprenticeship starts across New Anglia as a whole within ICT have reduced since a peak of starts for the 2012/13 academic

year. This is also in line with national trends. The reform of apprenticeships from frameworks to standards represents a strong

opportunity for SMEs and larger employers to take ownership of new apprenticeship occupational areas. The emerging Skills Plan for

the Digital Tech sector is identifying how skills providers and employers can best collaborate to respond to the reform policy, in line with

the skills gaps;

Both UEA and NUA are engaged in the development of degree apprenticeships and are well placed to coordinate engagement with the

sector to raise the profile of apprenticeships and develop pathways to encourage greater take-up.

Task and Finish Group (i) - Adastral Park, Martlesham Heath, Suffolk, AM Friday 6^th Jan 2017

Key Points:

Demand focuses on graduate level skills, however current local output often lacks enterprise/applied understanding. Larger firms often

favour a graduate with +2 years of experience.

SMEs lack the capacity to take on Level 3/A Level equivalent and invest in training and developm ent to get them to graduate.

Interns are used, particularly during the summer, and have become a useful source of return employment once their qualifications are in

place.

Developers identified issues with the ability for graduates to be able to code ‘from scratch’.

Lack of insight into ‘key competencies’ within HEI content.

Over reliance on contractors, who are expensive and transitory.

Low levels of engagement with FE and the independent training market.

Essex University is often used for graduate recruitment purposes, with the belief that local HEIs do not necessarily produce the

appropriate type of skills, particularly applied skills. Furthermore, due to the lack of locally led and delivered workforce training provision,

employers often refer to London based training institutions for in-work development solutions.

Fundamental challenges in sourcing talent locally and problems with ‘place attraction’ for graduate level supply to relocate to the Suffolk

area.

Software engineering is overlooked as a profession.

Off-shoring of work presents mixed value but due to ‘pipeline’, labour costs and entry level ‘front end’ skills abilities, it often becomes a

solution.

There needs to be a balance of new business clustering across New Anglia alongside the concentration of activity within existing

significant clusters- particularly at Adastral Park (Telecoms, Software Development and Engineering) and in Norwich (Digital Creative),

a key part of the TechEast role.

Wide networking is favoured, which needs to be made more appealing to SMEs. This could be achieved through signature ‘shows’ and

demonstrations, utilising the testing centre ‘assets’ across the HEIs.

Focus on encouraging the larger employers to share skills resource and purchase locally.

Task and Finish Group (ii) - White Space, Norwich, Norfolk, PM Friday 6^th Jan 2017

Key Points:

No clear indications were given as to why there has been a drop in employment levels between 2010 and 2015, however it was felt that

the redefinition of business location by a number of larger employers may have affected the statistics.

The unique offer for the region should be centred around the two primary clusters in Norwich (Digital Creative) and Adastral

Park/Martlesham Heath (Telecoms/Software Development and Engineering).

Some uncertainty regarding the allocation of SIC codes with reference to digital media services, recognising the unregulated nature of

SIC code allocation by businesses overall. Therefore, the view was that the scale and economic contribution of the sector is probably

understated through SIC code modelling, particularly given the cross-cutting nature of the digital tech sector.

Demand is usually at graduate levels, with constraints surrounding finding suitable talent below degree level and supporting their job

readiness- due to SME capacity constraints. This has particularly affected the take up of apprentices.

As with Suffolk, the attraction and retention of talent to the local area is a key barrier.

School engagement is seen as a priority but can be a timely and complex process. This was emphasised by the ‘Digital City’ events,

which is popular with businesses, stimulating strong interaction with UEA and NUA, but lacks overall school engagement. The sector

recognises as a priority the need to develop an organised and structured process for engaging with schools/colleges to help develop the

pipeline of talent.

There is an underlying issue of ensuring candidates have sufficient relevant experience.

There is also less focus on FE and independent training market engagement.

Key Skills Needs:

App development for mobile solutions.

Digital marketing- both ‘soft’ and technical skills.

Technical design skills- with a focus on digital capability (and not graphic design).

IT security- data loss prevention.

Business analysts- behaviour driven design, problem solving skills.

Appendix 1 - Digital Tech sector definition

Standard Industrial Classification (SIC) Code SIC Details

% of SIC applicable to sector

26110

Manufacture of electronic components

26120

Manufacture of loaded electronic boards

26200

Manufacture of computers and peripheral equipment

26301

Manufacture of telegraph and telephone apparatus and equipment

26309

Manufacture of communication equipment

26400

Manufacture of consumer electronics

26800

Manufacture of magnetic and optical media

46510

Wholesale of computers, computer peripheral equipment and software

46520

Wholesale of electronic and telecommunications equipment and parts

58110

Book Publishing

18.4

58120

Publishing of directories and mailing lists

18.4

58130

Publishing of newspapers

18.4

58141

Publishing of learned journals

18.4

58142

Publishing of consumer, business and professional journals and periodicals

18.4

58190

Other publishing activities

18.4

58210

Publishing of computer games

58290

Other software publishing

59111

Motion picture production activities

33.2

59112

Video production activities

33.2

59113

Television programme production activities

33.2

59120

Motion picture, video and television programme post-production activities

33.2

59131

Motion picture distribution activities

33.2

59132

Video distribution activities

33.2

59133

Televison programme distribution activities

33.2

59140

Motion picture projection activities

33.2

59200

Sound recording and music publishing activities

33.2

60100

Radio broadcasting

33.2

60200

Television programming and broadcasting activities

33.2

Standard Industrial Classification (SIC) Code SIC Details

% of SIC applicable to sector

61100

Wired telecommunications activities

61200

Wireless telecommunications activities

61300

Satellite telecommunications activities

61900

Other telecommunications activities

62011

Ready-made interactive leisure and entertainment software development

62012

Business and domestic software development

62020

Information technology consultancy activities

62030

Computer facilities management activities

62090

Other information technology service activities

63110

Data processing, hosting and related activities

63120

Web portals

63910

News agency activities

63990

Other information service activities n.e.c.

70210

PR & Communications Activities

44.7

73110

Advertising agencies

44.7

73120

Media representation services

44.7

73200

Market Research and public opinion polling

44.7

74100

Specialised design activities

44.7

95110

Repair of computers and peripheral equipment

95120

Repair of communication equipment

Please note that the percentage of SIC applicable to sector value is derived from the TechNation16 report.

Appendix 2 - New Anglia LEP Digital Tech sector definition comparison with other recognised definitions of the sector

Alternative Definition

Standard Industrial

Department for

Organisation for Economic

SIC Details

TechNation16

Classification (SIC) Code

Culture, Media, & Sport

Co-operation &

Report

(DCMS)

Development (OECD)

26110

Manufacture of electronic components

26120

Manufacture of loaded electronic boards

26200

Manufacture of computers and peripheral equipment

26301

Manufacture of telegraph and telephone apparatus and equipment

26309

Manufacture of communication equipment

26400

Manufacture of consumer electronics

26800

Manufacture of magnetic and optical media

46510

Wholesale of computers, computer peripheral equipment and software

46520

Wholesale of electronic and telecommunications equipment and parts

58110

Book Publishing

58120

Publishing of directories and mailing lists

58130

Publishing of newspapers

58141

Publishing of learned journals

58142

Publishing of consumer, business and professional journals and periodicals

58190

Other publishing activities

58210

Publishing of computer games

58290

Other software publishing

59111

Motion picture production activities

59112

Video production activities

59113

Television programme production activities

59120

Motion picture, video and television programme post-production activities

59131

Motion picture distribution activities

59132

Video distribution activities

59133

Televison programme distribution activities

59140

Motion picture projection activities

59200

Sound recording and music publishing activities

60100

Radio broadcasting

60200

Television programming and broadcasting activities

Television programming and broadcasting activities

Alternative Definition

Standard Industrial

Department for

Organisation for Economic

SIC Details

TechNation16

Classification (SIC) Code

Culture, Media, & Sport

Co-operation &

Report

(DCMS)

Development (OECD)

61100

Wired telecommunications activities

61200

Wireless telecommunications activities

61300

Satellite telecommunications activities

61900

Other telecommunications activities

62011

Ready-made interactive leisure and entertainment software development

62012

Business and domestic software development

62020

Information technology consultancy activities

62030

Computer facilities management activities

62090

Other information technology service activities

63110

Data processing, hosting and related activities

63120

Web portals

63910

News agency activities

63990

Other information service activities n.e.c.

70210

PR & Communications Activities

73110

Advertising agencies

73120

Media representation services

73200

Market Research and public opinion polling

74100

Specialised design activities

95110

Repair of computers and peripheral equipment

95120

Repair of communication equipment