digital industries in yorkshire and humber

Digital industries in Yorkshire and the Humber

Sheffield Hallam University with data from Emsi


Sheffield Hallam University with data from Emsi 2

Digital industries in YorkshireDigital employs less than 2 per cent of the workforce in the Yorkshire and the Humber region – fewer than 40,000 jobs in 2016. That’s a lower profile than within the national economy, but the region is showing signs of catch-up, with impressive growth since 2010 and projected to continue to 2022.

In fact, from 2010 to 2022, employment is projected to nearly double within the industry. And that growth reflects what we think about digital industries in general: high-skill and high value. Key growth industries include computer programming, consultancy and software publishing.

Job growth 2003-2022 for 5 fastest growing sub-sectors in digital

Total jobs 2003-2022 for digital

Sub-sector % job growth in Yorkshire and the Humber 2003-2022

Computer consultancy activities 118.8264

Computer programming activities 249.0296

Data processing, hosting and related activities -35.3259

Other information technology and computer service activities

5.7374

Other software publishing 135.2376

Source: Emsi 2016.1, limited to those employing >100 in 2003, includes projections to 2022

Source: Emsi 2016.1, dotted lines indicate projections

Tot

al j

obs

(200

3=10

0)

Great Britain Yorkshire and the Humber

160

180

200

140

120

100

2005 2010 2015 2020



Yorkshire specialismsLabour market intelligence allows us to dig deep into labour market data and highlight those areas where a region is strongest, using ‘Location Quotients’, which measure whether employment is concentrated geographically.

The region’s lower profile within the industry means that it has no industries where it has large concentrations compared to the wider economy. But relatively speaking, the economy is stronger in the servicing side of digital: programming, consulting, software publishing, which score well in terms of median earnings.

Earnings in Yorkshire and the Humber – Top 5 digital specialist sub-sectors

Sub-sector Industry avergae earnings

Other software publishing £35,151

Computer consultancy activities £43,845

Computer programming activities £39,269

£41,598Other information technology and computer service activities

£31,582Data processing, hosting and related activities

Source: Emsi 2016.1, limited to those employing >100 in 2003

Location quotients in Yorkshire and the Humber –Top 5 digital specialist sub-sectors

Source: Emsi 2016.1, limited to those employing >100 in 2003

Sub-sector Location quotient 2016

Other software publishing

Computer consultancy activities

Computer programming activities

Other information technology and computer service activities

Data processing, hosting and related activities

0.761343

0.721505

0.708315

0.619324

0.317188



Apprenticeship engagementAs new industries, digital does not have the deep traditions in apprenticeships found in engineering or building trades. But at the same time, the practical knowledge needed in much of digital work make it a natural environment for using apprenticeship to tackle workforce skills problems.

At present, digital workplaces are already a little more likely than average to either offer or plan to offer apprenticeships – nearly 19 per cent of workplaces offer them at present, compared to 16 per cent for all industries.

Apprenticeship opportunitiesThe relatively new arrival of apprenticeships in digital mean there is certainly room to grow – there are around 1,800 establishments reporting that they don’t currently offer apprenticeships but would like to do so, a significant opportunity to expand workforce skills supply.

Establishments in Yorkshire and the Humber digital projected against Apprenticeship engagement segment

Source: Emsi 2016.1 with analysis of Employer Perspectives Survey 2012 and 2014

Current Leaving Not engaged Planning

1,797

4,014

31

1,351

Apprenticeship engagement by employers in digital and across industries, by segment

Digital

100

75

50

25

00 25 50 75 100

All industries

100

75

50

25

0 25 50 75 1000

Current Not engagedLeaving Planning

Source: Emsi 2016.1 with analysis of Employer Perspectives Survey 2012 and 2014 with advanced manufacturing n=560 and all industries n = 27216

Leaving 0.4 Leaving 1.3

Not engaged55.8

Not engaged59.3

Current18.8

Current16.3

Planning25.0 Planning

23.1



Skills driving the workplaceLooking at individual occupations leading the way in the digital industries helps to explore the continuing dynamism within the sector. While employment is growing rapidly, its composition changes – and that has important implications in understanding skills requirements.

The top 10 here are expected to add more than 2,900 net new jobs between 2016 and 2022. Programmers and software development professionals lead the way, accounting for 792 projected net new jobs by 2022, but in the mix are a range of technology and business roles.

Leading occupations driving 2016-2022 job growth in digital

Occupation Job openings 2016-2022

Programmers and software development professionals

Information technology and telecommunications professionals n.e.c.

IT specialist managers

Sales accounts and business development managers

IT business analysts, architects and systems designers

8,2437,451

5,3674,811

3,1002,782

1,8291,599

2,3832,158

IT user support technicians

IT operations technicians

Information technology and telecommunications directors

IT project and programme managers

Other administrative occupations n.e.c.

1,8261,650

1,5511,381

1,7711,606

1,5351,383

1,1271,009

Jobs in 2016 Jobs in 2022

Source: Emsi 2016.1, staffing patterns analysis



Meeting skills demandLooking at the top 5 occupations for growth within the sector, the largest number of job openings in digital industries comes from business development roles – nearly 10,000 over six years, with other sales and marketing roles not far behind.

The range of job roles leading in digital show the ladder of opportunity, with median earnings ranging from £23,000 IT operations technician roles through to marketing and sales directors earning £58,000.

Almost all roles are growing, but departures from the workforce mean a continuing flow of job openings – so that combined with growth, many Top 10 occupations will replace more than 1 in 4 workers by 2022, with over 46,600 new workers required across the Top 10.

Even such a highly skilled and knowledge-intensive sector as the digital industries is not immune to the continuing shift to high-skill production. While starting with a high base of 81 per cent of employment in high-skill roles in 2003, this is projected to rise to 86 per cent by 2022.

Job openings in Yorkshire and the Humber – Top 5 digital occupations

Occupation Job openings 2015-2020

Marketing and sales directors

Information technology and telecommunications professionals n.e.c.

IT operations technicians

Business sales executives

Sales accounts and business development managers

3,150

2,481

1,729

3,049

9,641

Source: Emsi 2016.1

Median earnings in Yorkshire and the Humber – Top 5 digital occupations

Occupation Median earnings 2015

Marketing and sales directors £58,513

Information technology and telecommunications professionals n.e.c. £29,601

IT operations technicians £24,089

£30,426Business sales executives

£37,373Sales accounts and business development managers

Source: Emsi 2016.1



Skills priorities for digitalSheffield Hallam University’s contacts within the digital industries sector have identified critical roles employers need to fulfil their future growth plans.

Labour market intelligence helps to highlight the scale of the recruitment challenge in the years ahead, as well as the sub-sectors which can most benefit from ensuring the skills supply is ready to meet demand for these roles.

The rapid growth of computer programming and consultancy will drive the high-skilled roles within the industry – analysts, programmers, developers – if the region is to achieve the growth it needs.

IT business analysts, architects and

systems designers

Programmers and software development professionals

Web design and development professionals

1,569 job openings, including net 359 new roles by 2022

3,955 job openings, including net 1,007 new roles by 2022

853 job openings, including net 172 new roles by 2022

6,303 currently employed in Yorkshire and the Humber,

with median earnings £38,666





34 per cent of IT business analysts, architects and systems designers work in advanced manufacturing

48 per cent of programmers and software development

professionals work in digital

28 per cent of web design and development professionals

work in digital

Leading employers within digital include computer

consultancy, programming and service activities





Percentage of employees with degree or higher

IT business analysts, architects and

systems designers

Programmers and software development

professionals

Web design and development professionals

62.6%73.0%67.4%



Sheffield Hallam UniversityOur Offer:

Digital and Technology Solutions Professional Degree Apprenticeship – BSc Hons Professional Practice in Digital Technology Solutions (Level 6) available in Cyber Security Analyst, IT Consultant, Network Engineer, and Software Engineer specialist pathways.

Benefits for employers:

• Get work-ready graduate calibre employees embedded within your organisation who truly understand your business and bring fresh perspective ideas.

• Get immediate access to a low cost resource – even in their first year, learners are able to offer a cost effective contribution via coding, app development etc.

• Foster the skills, creativity and loyalty employers need for employees to commit themselves to an organisation and drive it forward, more than a third of the programme involves practical work-based activity and assignments than add tangible value.

How we can help you:

The Department of Computing at Sheffield Hallam University has a recognised reputation for employer-centred education and has long-established relationships with major blue chip providers such as Cisco, Microsoft, Oracle, SAS, SAP and Sony, and is now ready to help you capitalise on higher apprenticeships.

Professionalism within an industry context is emphasised throughout with strong links to the British Computer Society (BCS).

We can help you to navigate the apprenticeship system, including using the new Digital Apprenticeship Service and claiming additional funding incentives where they apply.

As experts in student recruitment, we can support you to attract new young apprentices, developing your future talent pipeline, as well as increasing the capacity of your existing employees.

Intelligence data provided by EmsiAt Emsi, we believe that the key to creating a better national economy is to achieve better connectivity between education providers, economic developers and employers at the local and regional level. Our vision is to facilitate this connectivity by joining these sectors together through the common language of data. To achieve this, we employ a team of expert economists, data scientists and software programmers to build a dataset that is not only highly granular and extremely robust, but also accessible and easy to use. Emsi was founded in Idaho in 2000 and now serves clients in the US, Canada, Australia and the UK.

Intelligence sources and acknowledgementsAll analysis conducted by Emsi using either the Emsi 2016.1 UK dataset or from the Employer Perspectives Survey 2012 and 2014. Analysis uses a new definition for the digital industries, including 5821, 5829, 6201, 6202, 6203, 6209, 6311 and 6312.

UK Commission for Employment and Skills. (2013). Employer Perspectives Survey, 2012. [data collection]. UK Data Service. SN: 7295, http://dx.doi.org/10.5255/UKDA-SN-7295-1

UK Commission for Employment and Skills. (2015). Employer Perspectives Survey, 2014. [data collection]. UK Data Service. SN: 7614, http://dx.doi.org/10.5255/UKDA-SN-7614-1

To find out more, email [email protected] or call 0114 225 3433

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