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IPPR - Slump in finance sector recruitment in aftermath of Brexit vote
New IPPR analysis shows some of the effects that the vote to leave the European Union is having on the English jobs market
New research based on live job postings shows a significant ten per cent drop in postings in the financial sector in July and August compared to May and June.
Postings for the finance sector as a percentage of the whole economy decreased across every region in England in the two months after the referendum vote. This is striking as it is the only year in the past four where this trend has occurred.
In London there was a 13.6 per cent downturn in jobs advertised in the finance sector, including for Chief Executives and senior officials, managers, as well as administrative occupations.
Whereas official job figures have a time lag of at least six weeks, IPPR’s research with Burning Glass technology uses live postings that can provide a more immediate picture of trends in particular industries or occupations.
IPPR is renewing its call for the government to reduce the economic damage of uncertainty over Brexit by saying it will prioritise passporting rights and access to the single market in negotiations.
Clare McNeil, IPPR Associate Director for Work and Families said:
“This new data shows the immediate impact that the vote to leave the European Union appears to be having on the finance sector.
“As one of our largest sectors, the financial sector is vital to the wider wellbeing of our economy.
“That is why the Prime Minister needs to end doubts around whether the government will pursue access to the single market and passporting rights as high priorities in the Brexit negotiations.”
In terms of the broader job market beyond the financial services sector, employer recruitment patterns in the two months before and after the referendum vote were in line with previous trends.
The percentage drop in postings in the finance sector occurred across England:
Region - Percentage drop in postings
East Midlands 4.8%
East of England 11.0%
Greater London 13.6%
North East 12.8%
North West 11.4%
South East 4.8%
South West 3.6%
West Midlands 6.2%
Yorkshire and the Humber 11.2%
England total 10.1%
1. IPPR aims to influence policy in the present and reinvent progressive politics in the future, and is dedicated to the better country that Britain can be through progressive policy and politics. With nearly 60 staff across four offices throughout the UK, IPPR is Britain’s only national think tank with a truly national presence.
Our independent research is wide ranging, it covers the economy, work, skills, transport, democracy, the environment, education, energy, migration and healthcare among many other areas. ippr.org
2. Burning Glass Technologies delivers job market analytics that empower employers, workers, and educators to make data-driven decisions. Burning Glass is reshaping how the job market works, with data that identify the skill gaps that keep job seekers and employers apart and tools that enable both sides to bridge that gap and connect more easily. The company’s artificial intelligence technology analyzes hundreds of millions of job postings and real-life career transitions to provide insight into labor market patterns. This real-time strategic intelligence offers crucial insights, such as which jobs are most in demand, the specific skills employers need, and the career directions that offer the highest potential for workers. burning-glass.com
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