Cloud boom raining jobs – but casts shadow on long term tech forecast
The cloud is helping to fuel one of the biggest tech booms since the 90s, with IT hiring at its strongest rate since 1998.
With an 11 percent rise in tech sector employment on last year, cloud computing accounts for an astonishing six percent of job listings.
And with headcount reaching 720,000 industry-wide, unemployment in the sector has reached a low of 3.2 percent, down from 4.2 per cent in June.
With many non-tech companies making mobile and online a priority this year, tech led employment is burgeoning throughout the whole UK economy. And a proliferation of tech start-ups, particularly in the capital, is also enhancing employment figures.
So is industry growth sustainable or are we heading for inevitable bust a few years down the line?
London’s tech start-up scene is in transition. The set up phase has been nailed in the UK but there are concerns that the finance pool may be drained and growing the industry might become issue. With the domestic market naturally limited, many fledgling tech firms are beginning to look overseas for further capital and to grow their market, or considering floating on the stock market. Investors want to see returns from start up before releasing finds which could put a cap on further employment hikes in the industry.
And an industry wide concern that the cloud-led bubble may yet burst with improved tech capabilities ultimately reducing IT career prospects over the long term, there are fears that this year’s tech boom may be a prematurely optimistic forecast given the slow return to growth of the rest of the UK economy.
However, with healthy gains continuing in computer programming and consulting sectors, tech employment isn’t showing signs of slowing any time soon. And with a skills gap predicted well into the next decade, it remains a great time to be in tech.