While BREXIT (the departure of the United Kingdom from the European Union) consumed nearly all of 2017’s economic headlines for the UK, what does it portend for the 2018 UK Economy? Employers with plans to relocate employees to the UK, and those transferees currently in the process of relocation, should be aware of economic implications that might impact their plans.
UK Economy and Manufacturers Benefit from Eurozone and Global Growth
Despite predictions, there was no post-BREXIT referendum recession. Global growth and a vibrant Eurozone continue to benefit British manufacturing companies. However, the Organisation for Economic Co-operation and Development (OECD) predicts a further drop in UK economic activity, from 1.5 percent in 2017 to 1.2 percent in 2018. The OECD also predicts another drop to just 1.1 percent in 2019 when the UK is expected to leave the EU.
British Pound Weakness Benefits Exports for 2018
British Pound Weakness Hurt Citizens But May Temper in 2018
The weak British Pound led to higher inflation for imports, while wages did not keep pace. However, the low level of unemployment and lower immigration rates may lead to higher wages across the board. Also, as the government’s position is looking more secure, this supports the value of the currency.
UK Employers are Optimistic about UK Economy Job Growth
Surveys indicate UK employers are optimistic about generating jobs in 2018, with over half of all firms planning to increase employment. Employers in the North East UK are reporting a four-point increase in the Manpower Employment Outlook Survey.
UK Employers Worry About Skills Gap
A majority of UK employers note a skills gap is a major threat to the UK’s market competitiveness. Lower immigration rates will further hamper the skills gap. The Institution of Engineering and Technology (IET) 2017 Survey of 800 UK employers with technology and engineering staff report a lack of skills in the market. The IET also reports a shortage of engineering and technical skills among professionals presenting a major challenge.
The global relocation experts at Global Mobility Solutions (GMS) have helped thousands of our clients manage relocation to the UK. We have the knowledge and expertise to help your company determine the best plan forward as the UK Economy continues to evolve with BREXIT issues, currency fluctuations, and global economic challenges.
Contact our team of experts online to discuss how we can help your company’s global relocation plans for the UK, or call us directly at 800.617.1904 or 480.922.0700 today.