New Research Displays Importance of the Digital Economy for Cardiff South and Penarth

By The Editor

21st Jan 2020 | Local News

From research released yesterday, Cardiff South and Penarth is the constituency with the highest number of internet sector jobs in Wales as well as the second-highest contributor to the value-added by the internet sector, which was just behind Pontypridd.

The Cardiff S. and Penarth constituency had a total of 1,200 internet sector-related jobs. The internet sector contributes jobs and businesses to every community across the UK.

Nearly £45 billion, or 2.3 percent of the UK's GDP, came from the internet sector in 2016. Cardiff South and Penarth contributed £54 million towards this £45 billion total. Pontypridd had over £103 million in value-added contributions.

The Internet Association (IA) developed estimates for the size and scope of the internet sector in every UK voting constituency through a combination of its national-level internet sector estimates and proprietary constituency-level weights.

The new first-of-its-kind research shows just how important the internet economy is to Wales. The IA estimated that approximately 15,000 internet sector jobs exist in Wales overall, the estimated number of internet sector businesses is 2,000 and the estimated value-added generated from the internet sector is £1 billion.

The analysis shows a thriving, geographically-diverse internet sector in the UK. Key findings include:

• The internet sector provides nearly 400,000 jobs across the UK.

• The average number of internet sector jobs per constituency is 590.

• The median number of internet sector jobs across constituencies is 330.

• The internet sector provides approximately 80,000 businesses in the UK.

• The average number of internet sector businesses per constituency is 120.

• The median number of internet sector businesses across constituencies is 80.

• The internet sector contributes approximately £45 billion in value-added, the equivalent of 2.3 percent of GDP.

• The average value-added generated from the internet sector per constituency is £69 million.

• The median value-added generated from the internet sector across constituencies is £50 million.

The report from the IA states that people often focus on start-ups when talking about tech which often means people associate tech and internet sector jobs with London.

Internet Association research now shows, however, that the UK internet economy is far more mature and dispersed than looking at start-ups alone can reveal.

They have provided figures on the local, community impact of the internet in terms of employment, businesses, and value-added for all 650 constituencies.

The report states that: ''The internet sector isn't concentrated in a few places, but instead contributes to every community.

''From a few dozen internet jobs in Rhondda, Wales to nearly 23,000 in the Cities of London and Westminster, the internet is a major economic engine for every part of the UK.''

     

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