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London’s high tech success story has a cost-of-living problem

  • Autore:Ella Cai
  • Rilasciare il:2017-11-20
London’s technology sector may be competing with the world’s best-known tech city, San Francisco when it comes to job opportunities, but can the good times last?

London could be “stopped in its tracks by the restlessness of its tech workforce”, according to research by recruitment website Indeed.

The research found that 10.8% of all jobs advertised in the capital are in tech, virtually the same as the 10.9% as in San Francisco.

But the success of London’s booming tech sector could itself create a problem for employers. The Indeed research found that London-based tech professionals are far more likely to look for work outside their home region than workers from elsewhere in the country.

The most popular region is Scotland.

It is London’s high cost of living is responsible for this. Official ONS data showed the average London property cost £484,000 in September, more than double the UK average of £226,000.

London still boasts nearly a third of the nation’s available tech jobs, so its dominance of the UK tech sector is under no immediate threat.

Mariano Mamertino, EMEA economist at global job site, Indeed, writes:

“Yet booming regional tech hubs like Cambridge – which this month saw the opening of a major new Amazon development centre – are catching up fast. Our research suggests their success, coupled with the regions’ lower living costs, could tempt ever more London-based tech workers to look beyond the M25 for their next role.

“While London’s tech hub crown is not yet up for grabs, such an exodus could make it harder for the capital’s tech employers to find the skilled people they need to grow further.”

London-based employers account for just over a fifth (21.6%) of all UK job adverts listed on Indeed, yet the capital accounts for nearly a third (30.6%) of the nation’s tech job listings, far more than any other region.