West Midlands tech sector 'will create 52,000 jobs in four years'

The Department of Digital, Culture, Media and Sport (DCMS) UK’s regional digital ecosystems report is welcome news ahead of Birmingham Tech Week which starts on Monday.

Tech growth in the region grew by an average of 7.6 per cent a year between 2014 and 2019, the fastest region in the UK and it is expected to generate at least £2.7 billion for the local economy by 2025.

Job search engine Adzuna and investment analysts Dealroom for the UK’s Digital Economy Council and Tech Nation also shows tech companies in the West Midlands will raise more venture capital investment in 2021 than 2020 and tech job vacancies advertised have doubled since December 2020.

West Midlands tech companies have raised £454 million in venture capital funding already this year, compared to £358 million last year, while tech vacancies have increased from 5,099 in December 2020 to 9,287 in October 2021.

Digital Minister Chris Philp said: “As Birmingham Tech Week kicks off it’s great to see the digital sector in the West Midlands entering a golden era.

“There are high-quality and well-paid job opportunities for those who want to pursue a career in tech and the region is fast-becoming a powerhouse of digital talent."

He added: “We are determined to level up the country and we are working around the clock to back digital businesses with pro-innovation policies to boost digital skills and create jobs so everyone can benefit from this dynamic sector.”

The West Midlands will also benefit from the government’s £5 billion Project Gigabit which is the biggest broadband rollout in British history.

Around 194,000 hard-to-reach homes and businesses across Shropshire, Staffordshire and Worcestershire will get gigabit broadband, thanks to a government investment of between £183 and £311 million, with procurement set to start in November 2022.

The region also has the highest proportion of households with internet access at 97 per cent.

Dr George Windsor, Head of Data and Insights at Tech Nation, said: “The rapid growth of the West Midlands’ tech sector is testament to the quality of digital talent, innovation policies and opportunity in this thriving region of the UK."

Kim Leary, Birmingham Tech Week chairman, said: “The tech sector in our region is booming. We have a huge number of successful start-up and scaling businesses and a growing ecosystem powering FinTech to EdTech.

"Everyone has been working hard to shine a spotlight on the West Midlands so there’s a real sense of celebration and collaboration across the City. For me, this is particularly exciting to see and I’m proud that Birmingham Tech Week is able to play a vital role in this."