Technology sector job growth and business activity is outstripping the rest of the UK economy, according to the latest KPMG/Markit Tech Monitor UK report.
The report found that current job hiring by technology companies is close to its strongest for three years, and faster than the UK private sector average.
Almost half of tech firms (49 percent) intend to recruit more staff over the next 12 months, while only 11 percent anticipate a reduction.
In addition, around 58 percent of tech companies expect their business activity to rise over the year ahead, compared with only 4 percent that expect a decline.
Tudor Aw, head of technology at KPMG, said: “The report points to a UK tech sector that is in rude health, and increasingly optimistic in its outlook on business activity and recruitment plans.
“Our data also shows the positive impact the sector has on the UK’s economic performance as a whole and the important role UK tech companies up and down the country play in the burgeoning recovery."
Aw said the technology sector as a whole should get the profile and support it needs from government, such as focused government policies that help develop and encourage education in STEM subjects, and "ease of access to tech talent on a global basis".
Tim Moore, senior economist at Markit, said: “UK tech companies clearly punch above their weight in terms of contribution to UK GDP growth. The latest survey suggests the tech sector again outperformed the UK economy in terms of job creation, reflecting widespread optimism that workloads will continue to expand over the months ahead.
"A buoyant mood among tech companies about future job hiring intentions bodes well for growth in the year ahead, and is a further signal that the UK economy is set to continue its upward ascent over the course of 2014.”
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