There has been a lot of uncertainty in the run up to the referendum and following the vote for the UK to leave the European Union. According to a recent survey of businesses, it now seems that the UK job market is set to boom in 2017 despite Brexit.
UK Job Market Set To Boom in 2017 Despite Brexit
The Confederation of British Industry (CBI) polled 353 large and small businesses employing almost 1.2 million people for their annual employment trends survey.
They found that over 40% of businesses expect to increase their work forces this year. This is in comparison to only 13% of companies that predict their employee numbers will be reduced in 2017.
The results of the survey found that job creation is due to be highest in the science, IT and construction industries.
Were Brexit predictions wrong?
The Treasury issued dire warnings that Brexit risked half a million job losses, as well as the CBI’s own report that warned before the referendum that Brexit could cause almost a million jobs by 2020. The latest CBI survey seems to contradict the Brexit warnings.
The Deputy Director of the CBI, Josh Hardie, commented on the UK’s chronic skills shortage, saying it remained one of the “biggest worries for the future”. Hardie is also worried about the access to immigrant workers if the UK limits immigration from the EU after Brexit.
The annual employment trends CBI survey also showed half of businesses questioned believed over the next five years the UK will become less attractive.
Future job market risks
The CBI has warned policymakers to “carefully monitor” future increases of wages. It believes the introduction of a higher minimum wage risked damaging future investment. More businesses expect to increase pay in 2017 in line with inflation than a year ago.
Out of the companies questioned for the survey, 41% expect to absorb costs, about a quarter expect to raise prices in response to increases and 16% expect to make overall pay and benefits packages less attractive.
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