Tech Sector Shines as Economy Grows

The latest figures from the Office for National Statistics suggest that the economy in the UK is in recovery mode having grown at its strongest rate since 2007.

Statistics show that the country experienced 1.9 per cent growth in 2013, and Chancellor George Osborne has suggested that more good news is yet to come.

Job creation suggests confidence in economy

Mr Osborne cited the fact that 450,000 jobs were created in 2013 as evidence that the party's economic policies were indeed working.

In an interview with the BBC's business editor Robert Peston, Mr Osborne said: "This is a great place to invest and a great place to grow your business [which is] a verdict that is shared by many people around the world who are now putting their money into the United Kingdom."

James Knightley of ING Bank has suggested job creation and confidence in the economy are all positive signs for the country's future growth.

"Employment continues to rise robustly, housing activity is very firm, confidence is on the rise, credit growth is improving and the UK's key export market - the Eurozone - is showing some encouraging signs.

"Consequently, we believe that the economy can post GDP growth of three per cent this year," he said.

Tech sector performing well

Against this background of confidence, it is hardly surprising to learn that the UK's technology sector is once again performing well.

The latest KPMG/Markit Tech Monitor UK report showed the index at 61.0 in December 2013, which is the fastest growth in output it has experienced since reporting began back in February 2004.

Tudor Aw, head of technology at KPMG, said: "The last quarter of 2013 saw the sector's best growth performance in almost a decade, with a sharp increase in business activity, a rise in new orders and an increase in profitability despite higher costs.

"More importantly the sector showed again solid rates of job creation, well above the rates in other sectors of the economy," he said.

Jobs market flourishing in technology sector

Indeed, the report shows that in December, the index which measures employment was well above the neutral level of 50.0 -  at 53.9. This is not a new pattern, however, as the figures highlight the fact that the sector has been creating new jobs consistently for the past four years.

It looks as though this emphasis on job creation is set to continue. A study conducted by Markit in October 2013 - the Global Business Outlook Survey -  showed that nearly half of all companies questioned (43.9 per cent) were planning to increase staffing levels in the coming year. In comparison, just seven per cent stated they would be cutting back on staff.

Senior economist at Markit Tim Moore, said: "Our figures suggest that the tech sector has provided a positive contribution to recent falls in UK unemployment."

He stated that the sector had "established itself as a key growth engine within the UK economy over the past five years" and suggested the future looked positive for those in the industry.

"Tech companies will surely play an important role in both boosting UK GDP and bringing down unemployment during the months ahead."

Economic growth expected to spark job creation in construction sector

It's not just the technology sector which is benefiting from a stronger economy. 

The Construction Industry Training Board (CITB) has announced that a surge in demand for new homes could lead to as many as 30,000 new jobs in the construction sector in Scotland.

CITB's report was put together by the Construction Skills Network, which hinted that industrial building projects would provide a further boost to the industry.

Graeme Oglivy, director of CITB Scotland, said the figures were "both encouraging and challenging".

He also suggested that the north is faring well overall in terms of the jobs market as "unemployment fell faster in Scotland in 2013 than anywhere else in the UK".

So, it would seem that the economy is rebounding giving businesses more confidence, which is in turn leading to greater job creation that is turning into further growth for industry. 

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