- Over 5000 IT and telecoms jobs will be created due to the Games
- London job creation to exceed that of Barcelona, Atlanta, Athens
The 2012 Olympics in London is set to generate over £250 million for the IT and
telecoms job sector, according to research from IT recruiter Greythorn.
The report estimates 5,000 new IT and telecoms jobs will be created in the wake
of the Olympics, as London 2012 requires an unprecedented level of technology
services to cope with the demands of a modern economy.
In addition to the traditional sectors impacted by the Olympics, like construction,
hospitality and retail, the Games will need a vast high-tech infrastructure to
support the media presence, as well as putting into place cyber security
measures and coping with the IT demands of those sectors.
If 5,000 jobs are created, each with an average salary of £48,562 for IT and
technology professionals1, that equates to gross earnings of £250.1 million per
Paul Winchester, managing director of Greythorn, said, “The IT and telecoms
infrastructure required to host the Olympics will leave a significant high-tech
footprint on the UK labour market. Before the Olympics begin, emergency service
lines need to be secured, WiFi coverage needs to be expanded (including an
attempt to get internet access across the tube network in time for the games),
and measures must be taken to prevent cyber attacks. The demand for skilled
technology professionals is already increasing markedly. Given that 5% of the
UK’s 29.12 million strong workforce work in IT and telecoms2, and government
forecasts suggest 103,000 permanent jobs3 will be created by the Games, our
estimate may be on the conservative side.”
Stronger legacy than previous games
According to Greythorn, the labour market legacy of London 2012 is set to be
greater than that of the Atlanta, Barcelona, Athens and Sydney Olympic Games.
The 103,000 permanent and temporary jobs that are to be created will exceed
the 77,000 created by Atlanta and the 20,000 created by Barcelona,1 because of
the stronger capacity of the private sector in London, and the larger size of the
regional economy, meaning it is better placed to sustain the economic
momentum of the Games, even after the immediate post-Games downturn.
London has also learnt from the successes of Sydney and Barcelona, and put into
place projects designed to promote economic activity after the Games.
The London Olympic Games Organising Committee programme to secure jobs in
the long term following the Games emphasises the skills required for a high-tech
economy and the five London boroughs closest to the Olympic Park have now
invested £28 million to meet that aim.
Additionally, the London Development Authority is aiming to create 373,000 jobs
for unemployed Londoners as a result of The Games. They have invested £20
million to seize the job opportunities generated by the Olympics6. They are also
putting an emphasis on skills-based training and job search advice to increase
their chances of staying in Olympics-related employment after the Games have
Paul Winchester said, “Government investment will be only the tip of the iceberg
in terms of IT job creation. The Olympics offers a wealth of opportunities to
entrepreneurs, and we expect to see the private sector sustain the employment
legacy of the Games well beyond 2012. Demand for IT and telecoms services
have already gone up and a number of agencies have already been selected by
Olympic suppliers. We expect this to accelerate in the build up to the Games and
Foreign direct investment, 14% of which is due to come from China7, will also
play a role in the IT and telecoms jobs legacy. 63 foreign companies have
established, or reinforced, their presence in London as a result of the Games,
including major IT and technology companies like Atos Origin, Crystal CG, and
Chinese telecoms kit maker Huawei.8 The agency responsible for attracting direct
investment from foreign companies to London, Think London, is aiming to create
5,000 jobs by 2016 by attracting foreign investment in the capital - many of
which will be in the IT and telecoms sector. Their programme is already six years
ahead of schedule.
Paul Winchester said, “Foreign technology and telecoms companies have
recognised that the scale of the Games means there is huge scope for new
business in London and this has made London a great place for new investment.”
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