Jersey’s tech sector has grown by as much as a third in a decade… but experts are warning that the Island risks missing a huge opportunity without greater investment.
New analysis by local impact advisory firm Derros has found that almost 1,000 jobs have been created in technology-intensive industries since 2014 – a 31% increase.
That growth outstrips both overall employment growth in Jersey and the expansion of the UK’s digital sector over the same period.
Around 4,000 jobs
The research suggests that tech-intensive roles now account for around 4,000 jobs – or 7.3% of the island’s workforce – and tend to pay around 35% more than the average salary.
However, the report warns that Jersey still faces significant barriers to developing the sector further, including skills shortages, limited investment and a lack of supporting infrastructure.
Speaking to Connect Magazine, Derros cofounders James Linder and Toby Rossiter also highlighted concerns about declining productivity and an over-reliance on financial services.
Investment needed
They went on to argue that stronger investment in innovation, research and development and economic development is needed if Jersey wants to go for future growth, noting that the Island currently spends a far smaller share of its economy on economic development than comparable jurisdictions.
Mr Rossiter explained: “The data would suggest that: if we look at the composition of government spending in Jersey, we can see that spending on economic development as a share of GDP is about 1.1%, but in the UK – through Innovate UK and other initiatives – that same figure is closer to 4%.
“If you were to look at other international finance centres like Luxembourg or Malta, where Microsoft has a base, it is between 6.5% and 7.5%. So, arguably, we should be investing in areas that will improve the economic capacity of the Island.”
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Read the full feature in Connect Magazine below, by picking up the April issue around the Island, or by heading to the Bailiwick Express app…