THE INTERNET is an economic powerhouse that is driving the economy in Wales through jobs, businesses and output, new Internet Association analysis reveals today.
The new research by Internet Association highlights the value the internet brings right across the UK economy. Nationally, the internet economy contributes approximately 400,000 jobs, 80,000 businesses, and £45 billion in Gross Value Added to the UK’s Gross Domestic Product (GDP). These equate to about 1.2 percent of UK jobs, 3.1 percent of UK enterprises, and 2.3 percent of UK GDP.
The new research also gives, for the first time, a view of how important the internet economy is to Wales. IA, using a proprietary measurement approach, finds that the estimated number of internet sector jobs in Wales is approximately 15,000, the estimated number of internet sector businesses is 2,000 and the estimated value-added generated from the internet sector is £1 billion.
The findings showed:
- In Wales, the constituency with the highest number of internet sector jobs is Cardiff South and Penarth which has approximately 1,200 internet sector related jobs.
- The constituency with the largest number of internet sector related businesses in Wales is Pontypridd (530 businesses).
- Pontypridd also has the highest concentration of internet sector related businesses, with 13.4 percent of all local businesses in the constituency related to the internet sector. Cardiff North and Newport East have the second and third highest shares of internet sector businesses, with 2.4 percent and 2.2 percent respectively.
- The largest contributor to value-added in Wales is Pontypridd with over £103 million in value-added contributions. Second is Cardiff South and Penarth (£54 million) and third is Cardiff Central (£43 million).
UK Executive Director Daniel Dyball said: “These figures highlight the true value of the internet sector to communities in Wales. From Rhondda to Arfon, the internet is a major economic engine that is delivering benefits to the economy and society.”
The findings of the report also showed:
- 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
Dyball continued: “The positive figures and tangible benefits are only set to grow as technology develops, but the Government must ensure the UK has the right policies to allow the internet to thrive. We are keen to work with the new Government to make the UK one of the best internet economies in the world.”