Search Results for: economic

July 28, 2016

Working in an office is NOT as bad as smoking, whatever you might read ⁰

by Mark Eltringham • Comment, Knowledge, Wellbeing, Workplace, Workplace design

There is a lurid headline in today’s Telegraph proclaiming that ‘Working in an office is as bad as smoking’. It’s been picked up by a number of other news outlets, has been splashed all over search engines and will no doubt join the stream of misleading narrative that distorts the subject and encourages designers to come up with nonsense like this. So, in an almost certainly vain attempt to close the sluice gates, we would encourage people to read the source material. In this case that is a piece of research in The Lancet medical journal published yesterday. What the report actually concludes is that ‘in addition to morbidity and premature mortality, physical inactivity is responsible for a substantial economic burden. This paper provides further justification to prioritise promotion of regular physical activity worldwide as part of a comprehensive strategy to reduce non-communicable diseases’. In other words, it supports an existing, well understood conclusion.

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July 28, 2016

Brexit ‘passporting’ rights will affect City office property market ⁰

by Sara Bean • Facilities management, News, Property

Occupier demand for commercial offices may cool as a result of the Brexit vote, with recruitment and expansion slowing, particularly in central London, according to the latest UK property snapshot from Colliers. However, despite the current economic and political climate, unique and premium properties in the City of London should remain insulated against downward rental pressures, as landlords remain bullish on rents and incentives for the best quality units; while given the low vacancy environment and anticipated constraints on new supply, new Grade A offices are still set to perform well. Average net effective rents in the West End are set to fall over the next 6-12 months, but with new supply already below trend and potential speculative schemes being delayed, downward pressure may be short-lived. For the future, retaining ‘passporting’ rights to the single market will be an important issue for the City during Brexit negotiations. To view the full report click here.

July 25, 2016

China raises retirement age as workforce set to fall by a quarter by 2050 ⁰

by Mark Eltringham • Flexible working, News, Property, Workplace

A rapidly ageing workforce is not just a challenge for Western economies. The government of China, the world’s second largest economy, has announced that it expects its workforce to decline by nearly a quarter (23 percent) between now and 2050 as the population ages and more and more jobs are automated. The Government is now considering raising the retirement age from 59 to 65 ahead of an anticipated sharp decline in the numbers of people of working age after 2030, according to the Ministry of Human Resources and Social Security. A spokesman for the ministry forecast a fall of 211 million people of working age to 700 million by 2050. China’s demographic challenge is mirrored in many countries but has its own characteristics thanks to its strict and controversial decades-long ‘one child’ policy‘ which it lifted last year. The country now has 220 million people over the age of 60, accounting for over 16 percent of its total population at the same time that its previously stellar economic growth has shown signs of slowing.

July 19, 2016

SMEs must offer flexible work or face recruitment and retention challenge ⁰

by Sara Bean • Facilities management, Flexible working, News, Workplace

SMEs that neglect to offer flexible work options may find their employees decide to switch to somewhere that does, according to a survey from Regus. Over 3,000 professionals across a variety of sectors were quizzed on the importance of flexibility in their working life. SME respondents left very little doubt about the value of a flexible approach, with 92 percent of workers in SMEs saying that, faced with a choice of two similar jobs, they would choose the one that offered flexible work. A third of respondents (33 percent) also stated that they would have stayed longer in their previous jobs if flexibility had been offered. According to Richard Morris, UK CEO, Regus, SMEs should think long and hard about the type of roles that they are offering to today’s professionals. He argues that the days of the fixed hours, fixed location job are becoming as outdated as the office fax machine. Flexibility is no longer seen as a perk, it is now a key differentiator for talented individuals.

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July 19, 2016

UK should avoid severe recession and property crash after Brexit vote ⁰

by Mark Eltringham • Comment, Knowledge, News, Property

UK growth had already eased from around 3 percent in 2014 to around 2 percent before the EU referendum due primarily to slower global growth, but the Brexit vote to leave the EU is likely to lead to a significant further slowdown. UK GDP growth is forecast to decelerate to around 1.6 percent in 2016 and 0.6 percent in 2017 according to PwC’s main scenario in its latest UK Economic Outlook report. Quarter-on-quarter GDP growth could fall to close to zero in late 2016 and early 2017 in this main scenario, but is then projected to recover gradually later in 2017 as the immediate post-referendum shock starts to fade. The UK would avoid recession in this scenario, although the report notes that uncertainties around this view are significant, with alternative scenarios showing GDP growth in 2017 of anywhere between +1.5 percent and -1 percent. But even this latter relatively pessimistic scenario would not be a severe recession of the kind seen in the early 1980s or in 2008-9.

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July 15, 2016

ICE makes the case for infrastructure ahead of Brexit negotiations ⁰

by Neil Franklin • Cities, News, Property, Public Sector

In a new report Brexit – The Case for Infrastructure, the Institution of Civil Engineers has set out the business case for the valuable contribution which infrastructure makes to the economy and argues that the UK should not lose sight of this as it begins negotiations for Brexit as it leaves the European Union. The report claims that high quality, high performing infrastructure is vital for economic growth and improved quality of life. It points to transport, communications, energy and housing as being central to spreading opportunity across the whole country. It also makes the case that infrastructure acts as a catalyst for social and economic inclusion, encouraging greater participation in society from people of all walks of life. In particular, during uncertain or volatile economic times, continued investment in UK infrastructure can help provide economic stability, facilitate inward investment and drive economic growth.

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July 15, 2016

Substantial growth in 21st Century self employment in the UK ⁰

by Mark Eltringham • Flexible working, News

The 21st Century has seen an explosion of self employment in the UK, and most people who have become self employed have done so for positive reasons, claims a new report from the UK Government’s Office for National Statistics. According to the Trends in Self Employment Report, there are now more than 4.7 million people classified as self employed, around 15 percent of the workforce. There has been a marked upturn since the 2008 recession, an increase of 730,000 over that period. The trend to self employment has been evident since the turn of the Millennium when around 3.2 million people were classified as self employed. Between 2001 and 2015, part time self employment grew by 88 percent, compared to 25 percent for full time work, partly because of the growing number of workers choosing part time self employment before retirement. The report describes the changes as structural, which suggests that the growth will continue.

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July 4, 2016

New office market briefing remains cautious about impact of potential Brexit ⁰

by Mark Eltringham • Comment, Company news, Knowledge, Property

JLL has published a new briefing document to look at the possible impact of the recent Brexit vote on the UK’s office market. The report’s main claim is that the underlying economic fundamentals in the UK remain solid in comparison to previous downturns, and, while expectations are unsurprisingly being downgraded, there is still no need for occupiers or landlords to become too concerned at the moment before the full details and effects of the UK’s exit from the EU become apparent. The document also suggests: occupiers are taking stock, so flexibility is likely to become fundamental to near term decision making. Longer-term impacts or benefits of Brexit are still to play out; office occupier demand in London will be subdued in the near term although low vacancy levels, coupled with an increasingly diverse occupier base, should prevent a dramatic fall in rents compared to previous market corrections; hotels will benefit from weakened sterling and increase in tourism although they may see costs increase.

July 1, 2016

Workers say increased recruitment would cut workplace stress ⁰

by Sara Bean • Flexible working, News, Wellbeing, Workplace

The tumultuous events of this week won’t have helped, as nearly half of all employees already say recruitment freezes have left them feeling under-resourced and under-staffed at work, leading to increased workplace stress. Research by MetLife Employee Benefits claims that 46 percent of employees believe their organisation has not recruited enough since the economic downturn with 40 percent saying workplace stress would be reduced if employers took on more people. This is despite the fact that around 42 percent of employees say their company helps staff to deal with work pressure and stress and nearly one in three (31 percent) say employers help new recruits to understand the pressure involved in their job. And while companies are investing in workplace benefits – with around 50 percent of employees having access to a range of wellbeing benefits including medical care, gym memberships, counselling services and flexible working hours, they are not always seeing the benefits.

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June 28, 2016

Countries aware of but not harnessing full potential of older workers ⁰

by Mark Eltringham • Flexible working, Knowledge, News, Workplace

The idea of a fixed retirement age looks increasingly distant in countries around the world and perhaps none more so than the US. According to a study from the Pew Research Center, based on data from the federal Bureau of Labor Statistics, more US over 65s are working than at any time covered in the analysis, and they are working longer hours. As of May, nearly a fifth (18.8 percent) of over 65s worked full or part time, up from 12.8 percent in 2000. Intriguingly, the study also shows that this represents a significant greying of the workplace as in the overall population, 59.9 percent of Americans are currently in jobs, down from 64.4 percent in 2000. The same pattern is evident even in workers significantly older than 65. Even the over 75s are working at higher rates than they did before the 2008 recession, the only age groups about which that can be said, according to Pew, emphasising the fact that the workplace is getting older rather than younger as is commonly assumed.

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June 24, 2016

Property and workplace experts have their say on the Brexit outcome ⁰

by Mark Eltringham • Architecture, Comment, Facilities management, Property, Workplace, Workplace design

Well, the results are in and the UK’s electorate has voted by a narrow margin for the country to leave the EU. There are likely to be other developments but whatever you make of the UK’s decision to vote to leave the EU – and I think it’s fair to say most independent people think it’s inexplicable – there’s no doubt that it will have a profound impact on the UK’s economy, relationship with the world, culture, working conditions and markets. What it will mean in practice won’t be apparent for months or years, of course, but that hasn’t stopped experts who work in the property, workplace, design, legal, HR and architecture sectors having their say on its potential implications. We’ll look at these specific issues in more detail going forward but for now, here’s a round-up of those we have so far, which we’ll keep updated throughout the day as the dust settles on what will prove to be a momentous decision for the UK, Europe and rest of the world.

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June 23, 2016

How could UK employment laws be affected by the outcome of the Brexit vote? ⁰

by Sathesh Alagappan • Comment, Legal news, Workplace

The result of yesterday’s EU referendum vote will dominate the UK’s political scene for months now and the outcomes will be followed with particular interest by business owners, who currently have to adhere to a range of employment laws that either originate from the EU itself or have been developed within the context of our membership of the organisation. Therefore, a vote for Brexit today could fundamentally change the way businesses operate in the UK. This is particularly true given that a large amount of the UK’s employment law has its roots in Brussels. Article 153 of The Lisbon Treaty set the precedent for this. It allowed the EU to create a base level of legislation that applies to all facets of the workplace. This includes working hours, workers’ rights, and health and safety. Individual nations are free to supplement this with their own legislation. For example, the minimum wage is an example of employment legislation that is independent of the EU.

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