London and the South East creating almost two thirds
London and the South East creating almost two thirds of IT jobs post-recession
Yorkshire and Humberside only other region to increase share of IT jobs market
London and the South East are creating almost two thirds of all new IT jobs (64%) in the UK, despite representing just 27% of the overall population, according to research by ReThink Recruitment, the business and technology staffing company.
Before the recession (June 2008) London and the South East accounted for 58% of all IT jobs created in the UK.
The research shows that the IT jobs market in London and the South East is bouncing back strongly from the recession - despite fears that it would be hardest hit due to the concentration of IT jobs in the banking sector (full results below).
Michael Bennett, Director, ReThink Recruitment, says: London has a high concentration of financial services firms, which are heavy users of IT skills. Many of them responded to the downturn by cutting their IT departments to the bone. As businesses levels have picked up, many have found themselves understaffed and have had to replace a lot of the skills that were shed during the recession.
The financial crisis has also prompted significant investment in compliance and risk management systems in the banking sector. We have seen a substantial increase in demand for candidates skilled in these areas.
The wave of mergers between financial institutions brought about by the credit crunch has fuelled demand for IT candidates in London and the South East to handle post M&A integration of banking IT systems.
He adds: Banks are now kick-starting projects which stalled during the recession. This activity tends to be focused in London and the South East.
ReThink Recruitment also points out that there has been a significant demand for IT skills from the new banks which have emerged after the credit crunch.
According to ReThink Recruitment, the heavier reliance of many of the UK regions on the public sector to create IT jobs is likely to be a major factor explaining their loss of jobs market share.
Michael Bennett explains: IT budgets in the public sector have come under huge pressure. Regions outside London and the South East tend to be much more reliant on the public sector and with hiring freezes now implemented this may stifle the creation of IT jobs.
New IT jobs by geographical region
% of GB population
% of new jobs before recession June 08
% of new jobs created June 10
Yorkshire & Humberside
Yorkshire and Humberside increase share of IT jobs market post-recession
The research by ReThink Recruitment shows that Yorkshire and Humberside is the only UK region outside London and the South East to have increased its share of the IT jobs market post-recession.
Sarah Tulip, Regional Manager at ReThink Recruitment Leeds, says: The Yorkshire and Humberside IT market suffered a torrid downturn as several high street banks located in the area implemented redundancy programmes which affected hundreds of employees at a time.
Aside from financial services, Yorkshire and Humberside has focused in recent years on ecommerce and its high-tech infrastructure has attracted many blue-chip organisations. Siemens, for example, has recently chosen to house its corporate headquarters in Yorkshire. In addition, as many large retailers moved parts of their business online, this has also created a surge in demand for staff experienced in developing large transformational IT projects.