Where Next In London’s Job Market?
In the post-referendum reality, London’s position as a global economic powerhouse may be in question. Searches for jobs abroad have spiked, and the proportion of recruitment into full-time positions has dropped by 29% in the past three months. Where does this put recruiters?
Brexit turmoil has struck London the hardest of all the UK regions so far. Businesses in key sectors such as the property market struggle with uncertainty which directly influences their hiring decisions. The London Chamber of Commerce reported that in in the second quarter of 2016 business confidence was shrinking, with just 13% of business owners expecting domestic growth, down 4% from the previous quarter.
While this is bad news for the staffing industry, areas such as Technology may prove safe havens for recruiters. Last month, Software & Computer Services (including FinTech) vacancy volumes in London were up 16% compared to July 2015; conversely, vacancies across all sectors were down 14%.
Despite the challenges, the outlook for London is not all negative. In the short-term, ONS statistics for the most recent full quarter were positive, with the general labour market performing well up to the referendum.
Moreover, long-term forecasts issued by the Greater London Authority suggest that the London job market will continue to expand. NatWest senior economist Sebastian Burnside commented that “(…) London’s strengths are much broader than that. Technology, professional services and the creative industries are all strong. The things that powered the economy in London won’t have gone away overnight, even if we don’t get a good deal out of negotiations.”
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The data used in this article comes from and is owned by Vacancysoft LLP.