Tech skills are being used across a diverse range of sectors aside from Technology (25%), including Professional Services (12%), Financial services (11%), and Architecture and Engineering (8%).
By looking at the concentration of LinkedIn members with tech skills in sectors, functions and occupations in UK regions, we can better understand the relationship between skills and clustering. From this, we can infer specialisation, based on sectors in which tech skills are more concentrated.
The concentration of tech skills confirms many of the findings in Tech Nation 2017, and reinforces our understanding that skills are core to the development of clusters. Crucially, this analysis provides empirical evidence for the case of tech skills. We are able to show that tech skills are an important part of the mix when it comes to clustering – in that companies coalesce around a pooled market for workers with specialised skills .
Proportion of LinkedIn members with tech skills in top industry sectors worked in by members, by UK region
|
UK |
East Midlands |
East of England |
London |
North East |
North West |
Northern Ireland |
Scotland |
South East |
South West |
Wales |
West Midlands |
Yorkshire and the Humber |
Technology |
25% |
24% |
26% |
25% |
23% |
23% |
31% |
20% |
33% |
25% |
20% |
25% |
22% |
Professional Services |
12% |
10% |
12% |
14% |
9% |
11% |
11% |
10% |
10% |
11% |
9% |
10% |
10% |
Financial Services & Insurance |
11% |
6% |
10% |
17% |
5% |
8% |
12% |
13% |
8% |
9% |
8% |
7% |
10% |
Government/Education/Non-profit |
10% |
12% |
9% |
8% |
16% |
11% |
10% |
12% |
9% |
12% |
16% |
12% |
13% |
Architecture & Engineering |
8% |
10% |
7% |
7% |
9% |
9% |
7% |
8% |
6% |
9% |
9% |
9% |
9% |
Retail & Consumer Products |
6% |
8% |
6% |
5% |
5% |
8% |
6% |
4% |
5% |
5% |
6% |
6% |
7% |
Media & Entertainment |
6% |
3% |
5% |
9% |
3% |
5% |
3% |
4% |
5% |
4% |
4% |
3% |
4% |
Aero/Auto/Transport |
5% |
8% |
6% |
2% |
5% |
5% |
4% |
4% |
7% |
9% |
6% |
10% |
4% |
Telecommunications |
4% |
3% |
5% |
3% |
4% |
5% |
5% |
3% |
6% |
5% |
4% |
4% |
4% |
Healthcare & Pharmaceutical |
4% |
5% |
5% |
3% |
5% |
5% |
4% |
3% |
5% |
4% |
5% |
4% |
5% |
Oil & Energy |
4% |
4% |
3% |
2% |
10% |
4% |
3% |
14% |
3% |
3% |
5% |
4% |
4% |
Manufacturing/Industry |
3% |
5% |
4% |
1% |
6% |
5% |
3% |
3% |
3% |
3% |
7% |
5% |
5% |
Staffing |
2% |
1% |
1% |
2% |
2% |
2% |
1% |
1% |
2% |
1% |
1% |
2% |
2% |
We find that the West Midlands has the highest concentration of LinkedIn members with tech skills in Aero/ Auto/ Transport at double the UK average (10% vs. 5%), and Scotland has a high concentration in Oil and Energy – over three times the UK average (14% vs. 4%).
Contemporary hotspots of tech skills often relate to the industrial history of a region, including their past employment patterns, and supply chains that have developed. For instance, in the early 1970’s the West Midlands accounted for almost 60% of cars manufactured in the UK . Despite this having fallen over subsequent decades, the region remains a hotspot of automotive manufacture, as well as aeronautical engineering. Jaguar Land Rover, Rolls Royce and Tata Technologies have a significant presence in the region – and may explain the high proportions of members with tech skills in Aero/ Auto/ Transport sectors.
In Scotland, the continued importance of the oil and gas industry cannot be overstated – although its contribution has declined in recent years. Since the discovery of North Sea oil, and subsequent heights of exploitation through the 1970s and 80s there has been an aligned development of the petro-chemical industry, most notably concentrated in cities like Aberdeen. The concentration of members with tech skills in Oil and Energy is likely explained by the high-tech nature of the sector, and associated activity that has developed.
Government should act on transferable skills opportunities for workers with tech skills in sectors that are experiencing decline, such as the Oil and Gas sector in Scotland. A job includes skills, but also requires specific knowledge and behaviours – so best practice initiatives like Skills Development Scotland’s Oil and Gas Transition Training Fund should be learned from – to inform the way that individuals, employers and policy makers respond to future changes in the economy as a result of trends like increasing automation, globalisation, and demographic change. Aimed at people who have been made redundant from the oil and gas sector or are at risk of redundancy, the fund supports workers to apply their skills in new, or emerging sectors with stable, or buoyant growth prospects.