Following the Brexit vote in June last year, many experts predicted that markets would continue to fall leaving salaries stagnating and even falling in some sectors. Data shows the pace at which new jobs are being created is still slower than in 2014, with economic growth affected by the uncertainty caused by the vote.
There is, however, a rare piece of good news for Brexiteers and Remoaners alike as we are starting to see a comeback in the UK job market that has not stopped improving in the past 2 months. Barclays analysts studying IHS Markit’s latest survey results have confirmed that the ‘total job vacancies grew in June, as the number of available workers shrank due to EU citizens leaving the UK’ resulting in a pushing up of ‘salaries in the UK, at the sharpest rate of increase since November 2015’.
The Office of National Statistics (ONS) has concluded that these welcoming figures are most likely stemming from the plummeting of ‘net migration change (that fell by 84,000 people to 248,000 in 2016) driven by a statistically significant increase in emigration up 40,000 from 2015, mainly EU citizens and a decrease of 43,000 in immigration’.
Will higher salaries help companies hire the workers they need to ensure a successful flow of investments and incoming business?
Will the UK manage to produce enough qualified engineers and technical workers to fulfil companies resourcing requirements?
The forecasted decline in a qualified workforce, due in part to the migration of EU workers out of the UK will doubtless have an effect on companies’ ability to fill vacancies quickly and effectively, but it remains to be seen how this will affect profits.