A government study leaked and published on website BuzzFeed.com seems to suggest that Brexit will have a negative impact on the UK’s growth, whatever the scenario. The new analysis, from top officials in the British government, suggest the UK will be worse off outside the EU, and the impact will be especially big in a No Deal scenario with a reduction of 8% for UK Growth.
The impact on a softest Brexit is also forecast as being negative, more precisely a lower growth by 2%. Now that does not mean the UK will not experience a significative growth but at a slower rate than if it had decided to remain in the European Union.
See article here:
We have already seen many financial institutions moving teams across the sea to Ireland, Luxembourg, Germany, France, Switzerland or Poland. The teams usually targeted by such major changes are back office team in Banking, Asset Management and Insurance. These departures from the UK economy will have an impact on the economic growth of the country.
From a recruitment perspective, we have seen no particular change within the industry and still a high demand for talent, although what has changed is the attractivity of the UK market for European workers. The Pound (GBP) is at a lowest, the inflation is high, and the cost of living and life as a whole has exploded in the UK, leaving London and other British cities far less attractive for overseas talent. This is already adding pressure to the Finance and Tech/Digital industry who are struggling to find Fintech or Tech talent such as DevOps, Software Engineers, Android or IOS developers and even creative talent. If firms cannot recruit the talent they need in London, even trying to bring them from overseas, they will have to move their offices to locations more attractive to the talent pool they are targeting, like many Startups or small-size Tech firms which have already moved to Berlin, being seen as a better option for junior and mid-senior talent.
Posted on Tuesday Jan 30