Hiring in the UK private sector will grow by 8 percent in the next quarter, despite fears that Brexit may have an impact on jobs in the UK.
The Manpower Group Employment Outlook Survey is based on responses from 2,104 UK employers. The survey is used by the Bank of England and the UK Government and asks whether employers intend to hire additional workers or if they will reduce the size of their workforce in the coming quarter.
Mark Cahill, ManpowerGroup UK Managing Director, said that employers are still unsure what Brexit means and have therefore "shrugged off" fears that there will be any job losses in 2017.
"UK companies are going into 2017 hungry for top talent. Employers are still unsure about what exactly Brexit will mean, but are not letting the uncertainty deter them from hiring. In fact, some employers may be looking to bring in talent while they can before any curbs to freedom of movement across the European Union come into effect, as more than half of all the jobs created by UK employers this year went to EU workers," Mr. Cahill said in an online statement.
It is estimated that 20,000 new jobs will be created in the energy sector. In addition to this, construction is also up, while the UK Chancellor Philip Hammond committed in his autumn statement to invest US$27 billion in innovation and infrastructure over the next five years.
Chancellor Philip Hammond announces £2.3 billion Housing Infrastructure Fund to aid construction of 100,000 homes in areas of high demand— housebuilder (@housebuildermag) 23 November 2016
"The Chancellor's commitment to invest US$29bn in innovation and infrastructure over the next five years is a huge boost to the construction industry and the US$2.9bn housing infrastructure fund is also great news for house-builders. Building and skilled trades firms are desperate to make the most of this opportunity, but they have been facing a chronic talent shortage for years. This shortage means those with in-demand skills like scaffolders and bricklayers can command up to US$29 and US$31 per hour, (nearly US$63,000 a year)," Mr. Carhil said in an online statement.
When the UK voted to leave the EU on June 23, there were many questions raised as to what Brexit would mean for British businesses. Some believed that it would lead to a decrease in jobs, financial instability and another recession. Despite the drop in the pound, it appears that perhaps 2017 may not lead to a financial Armageddon after all.