About Michael Mandel

Chief economic strategist at the Progressive Policy Institute in Washington; Other affiliations:president, South Mountain Economics LLC; senior fellow, Mack Center for Technological Innovation, Wharton; former chief economist, BusinessWeek; author of the textbook "Economics:The Basics" (2nd edition).

London tech/info job growth in Q1 equals SF-SV, New York, and Boston combined

When I was in London a couple of weeks ago, I stayed in Shoreditch, one of the key tech centers in London, and the energy was palpable.

Indeed, when we look at the latest statistics, London’s first quarter job growth was off the charts. In particular,  London’s tech/info sector grew by 9.6% from the first quarter of 2013 to the first quarter of 2014. The next closest U.S. state was Massachusetts, at a 6.2% increase in tech/info jobs over the past year (we have data for 23 states).

Looking at the data in terms of the increase in the number of tech/info jobs, rather than growth rate, gives an equally impressive result. London added 36,000 tech/info jobs over the past year, roughly about equal to the combined gain in tech/info jobs in San Francisco-Silicon Valley, New York City, and the Boston metro area (respectively 18.3, 10.6, and 7.4 thousand). (Note:The SF-Silicon Valley number includes computer and electronic products manufacturing, a category covering companies such as Apple).

 

 

 

 

Londontech1Q14

 

 

HOW LONDON’S GROWTH COMPARES
tech/info job growth, 1Q13-1Q14
percent thousands
London(UK) 9.6% 36.0
Boston metro 7.1% 7.4
SF-Silicon Valley 5.4% 13.9
SF-Silicon Valley* 4.7% 18.3
New York City 4.5% 10.6
Massachusetts 6.2% 9.3
Texas 3.9% 12.6
Utah 3.6% 1.9
North Carolina 3.5% 3.8
California 3.4% 23.3
Oregon 3.4% 1.5
Florida 3.4% 6.8
Washington 2.9% 4.2
New York 2.8% 9.6
Colorado 2.2% 2.6
Michigan 1.8% 1.8
Georgia 1.6% 2.5
Minnesota 1.2% 1.0
Nebraska 0.7% 0.2
New Jersey 0.3% 0.4
Missouri 0.1% 0.1
Alabama 0.1% 0.0
Ohio -0.5% -0.6
Illinois -0.8% -1.3
Pennsylvania -0.8% -1.2
Connecticut -1.0% -0.5
Maryland -2.8% -3.1
Virginia -3.1% -6.8
For UK, tech/info sector defined as “Information and Communications”
For US, tech/info sector defined as Information (NAICS 51) plus
Computer Systems Design (NAICS 5415).
Table includes all states with published data on 1Q14 tech/info jobs
*Includes computer and electronic products manufacturing
Data: Office for National Statistics, Bureau of Labor Statistics, South
Mountain Economics

 

 

London-East-Southeast region outpaces California in tech/info

In the study London: Digital City on the Rise, we compared the London-East-Southeast region to California, pointing out that the tech/info sector in the combined UK region was growing faster than the American state.

According to just-released data, that trend continued into the first quarter of 2014. From the first quarter of 2013 to the first quarter of 2014, the London-East-Southeast region added 61,000 tech/info jobs, for an 8.4% gain. Meanwhile, over the same period, California added only 23,000 tech/info jobs, for a 3.4% gain.

 

 

London and surrounding regions vs California

In the new SME report, “London: Digital City on the Rise,” we note that

the tech/info sector in the combined London-East-Southeast region is growing faster than California, even taking into account the rapid growth of San Francisco.

Below is a chart that shows the difference. Between 2009 and 2013, tech/info employment rose by 11.4% in the combined London-East-South East regions of the UK, compared to an 8.8% rise in California. If we add in the computer and electronic products manufacturing industry into California’s total, that reduces the state’s growth rate even further.

 

LondonCalifornia

There are two factors explaining this result. First, the tech/info sectors in the East and South East regions are actually growing quite smartly. At the same time, the tech/info sector in the Los Angeles metro region has been lagging globally, showing only a 2.9% growth from 2009 to 2013.

 

 

NYC tech/info sector continues to grow

The New York City tech/info sector grew by 4.1% in the first four months of 2014, compared to a year earlier.* This is quite strong, considering that the national U.S. tech/info sector grew by less than 1%. over the same stretch.

*This is based on the same definition of tech/info sector used in the London paper–namely, the information sector plus computer systems design (NAICS 5415).

The Evolution of Journalism

We regularly write about the evolution of journalism (our last post can be found here). Perhaps not surprisingly, there are two separate trends. First, employment of “news analysts, reporters, and correspondents” was up 7% in 2013, continuing its rebound from losses in the Great Recession.

reporters

At the same time, the number of editors continued to fall, down about 6% in 2013.  True, not all editors are in journalism. Still, these figures suggest a pattern…more journalists who actually generate content, fewer editors to process that content before it goes online.

editors