May 31, 2017
Brexit uncertainty fails to impact London office demand, as occupiers push ahead with relocations 0
Since the announcement in June last year that Britain would be leaving the EU as a result of Brexit, there has been a widespread assumption that occupier demand, and hence wider market confidence in the commercial property market, would be knocked. Yet that does not seem to be the case, according to a study by real estate advisers Knight Frank, who have tracked financial and TMT requirements over the last 12 months, and compared them to key years in the property cycle. The study claims that the property market has mirrored the wider UK economy, which has proved resilient following the vote to leave the EU. Firms have reported a shortage of skilled workers across a range of industries including IT, accountancy and engineering. Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies. A survey of UK CEO’s conducted by PWC at the start of the year reported that six in every ten respondents expected an increase in company headcount during the course of the year. Furthermore, a number of large international firms have acquired new offices, and many companies expanded across Central London including Expedia, WeWork, HSBC Digital and Zoopla.
The UK economy is about to be hit by a fall in basic pay awards and real wages warns the CIPD, which has found that employers’ median basic pay expectations in the 12 months to March 2018 have fallen to 1 percent compared to 1.5 percent three months ago, which is lower than at any time during the past three and a half years. The findings from the latest CIPD/The Adecco Group Labour Market Outlook survey are consistent with recent Labour Market Outlook reports, which have indicated a slowing in the rate of basic pay growth, and with official labour market data. The report also found that 12 percent of private sector firms say the UK’s decision to leave the European Union has led them to consider relocating some or all of their business operations abroad. Popular relocation destinations include the Republic of Ireland (18 percent), Germany (17 percent) and France (13 percent).
If UK businesses are to remain competitive whoever wins the election on 8 June needs to invest in skills and career advice, as Brexit uncertainty means people are hesitating to move jobs, while there may be barriers in future to hiring workers from abroad; according to the latest research into the UK jobs market by the Recruitment & Employment Confederation (REC). The jobs market experienced the steepest drop in candidate availability for 16 months in April while demand for permanent and short-term staff remained high. Although growth in permanent starting salaries edged down to a four-month low in April, it remained sharp overall and stronger than the series average. Meanwhile, hourly pay rates for short-term staff increased at the sharpest pace in 2017 so far. Vacancies continued to rise markedly in April for both permanent and temporary/contract staff. This was despite growth in demand for both types of staff softening slightly since the previous month.
Today (29 March) the Prime Minister triggers Article 50 to begin the UK’s exit from the European Union, and a new piece of research claims that almost two thirds (62 percent) of HR professionals expect this to impact their HR strategy and more worryingly, over a third (35 percent) say that the leave vote will impact the profits of their business. According to the research from employee benefits specialist Secondsight, 37 percent have opted not to hire over the coming year, and 39 percent agreed that recruiting the right people into their business will now be more difficult than before the decision to leave was made. However, on a more encouraging note, 95 percent of the HR professionals surveyed will see their budget rise in 2017, and 18 percent plan to introduce new benefits in the year ahead.
May 18, 2017
A mixed forecast for the accountancy profession: Brexit highs and digital lows 0
by Mike James • Comment, Flexible working, Technology
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