January 17, 2019
Mandatory reporting of ethnicity pay gap could be ‘counterproductive’ if not done right
There is a ‘significant risk’ that the reporting ethnicity pay levels could be ‘counterproductive’ unless key differences between it and gender pay are recognised, said the Institute for Employment Studies (IES) in its response to the UK Government’s consultation on ethnicity pay reporting. Although the IES supports the government’s proposals to introduce mandatory reporting of ethnicity pay gap information, it suggests that cultural and practical barriers to collecting and reporting ethnicity data are greater than for gender pay. More time and greater government support are therefore needed to prepare for these changes. The consultation response voices specific concerns that measures to increase the recruitment of under-represented groups, for example through apprenticeships or paid internships, could serve to widen pay gaps initially. This could inadvertently discourage employers from taking positive action to improve their ethnic diversity. Reporting arrangements therefore need to also take account of changes in the levels of employment participation for different ethnic minority groups, as well as their pay.
The Northern Ireland office market had a record year in 2018, with a 100 percent increase in take-up, according to the latest figures from CBRE. The Northern Ireland (NI) office sector enjoyed its most successful year on record with 885,023 sq ft of take-up reported across 84 transactions, more than double that achieved last year. Notable office deals completed in 2018 included the PwC move to Merchant Square, Northern Ireland Civil Service at 9 Lanyon Place, Allstate at Mays Meadow, TLT at River House and Baker McKenzie at City Quays 2, which is part of Belfast’s City Quays mixed-use regeneration project. However, according to CBRE’s Real Estate Outlook report, the office market in NI is hampered by a severe lack of investment deals in the face of ongoing local, national and international political uncertainty. This means that while the real estate market in Northern Ireland generally has performed well in 2018, the investment sector experienced a decrease in activity as a resulting knock-on effect of the current political situation locally at Stormont as well as ongoing Brexit negotiations.
The European property sector is predicted to grow next year, according to CBRE’s 2019 EMEA Market Outlook report. Although recent indicators suggest some slowing of momentum economic growth in Europe will remain above-trend rate in 2019 and 2020, with Spain, Ireland and the central European countries expected to see the fastest economic growth. France’s growth is expected to accelerate as recent economic reforms begin to pay off; however, UK growth is expected to remain below-trend, but with better long-term potential once the current uncertainty around Brexit passes. Office markets around the region are expected to see positive growth in leasing levels in 2019. However, major European cities, including Paris, Berlin, Stockholm and London, are expected to see lower levels of employment growth in office-using sectors. 
