City brain drain ‘may hurt growth prospects’
Monday 09 September 2013
The City of London is facing a brain drain of talent that could eventually hit the UK’s economic growth, experts have warned.
A deficit of workers threatens because of skills shortages, an ageing workforce and a restrictive migration policy, the Association of Professional Staffing Companies (APSCo) said.
Almost 1.3m Britons with university-level education are now living abroad, it adds. By 2050, the UK is expected to have a shortfall of 10,200 qualified accountants, for example.
Ann Swain, chief executive of the recruitment trade body, said: “The recent positive economic data, coupled with a marked fall in unemployment is adding fuel to the growing skills shortages employers are experiencing.
“The skills shortages have always been there but as the recovery gains pace and employers have more confidence to hire, we could be facing a real problem.”
The warning was made as figures showed that the number of jobs in the financial services industry fell by 3.5 per cent between July and August, from 7,056 vacancies to 6,804, according to Morgan McKinley.
The number of professionals looking for positions also fell. Some 5,816 people were on the hunt for City jobs in the month, 25 per cent lower than in July. However, this was largely due to the summer holiday season.
Hakan Enver, operations director at Morgan McKinley, said: “As we anticipated last month, the slight fall in August is not unexpected, given the holiday season, and we are experiencing all the signs of a bounceback in activity in September.
“All the macroeconomic signs are pointing to this. The OECD has raised its UK growth forecast and last week’s Purchasing Managers’ Index revealed that the UK’s services industry grew at the fastest rate since 2006. There was also good news from the manufacturing and construction sectors and I am cautiously optimistic that this increased confidence will feed through into hiring figures during the final quarter of the year.”
For those people who actually secured news jobs during the period, the average salary actually rose by 20 per cent compared to a 17 per cent rise the previous month.
Malaysia Airlines plane crash exposes alarming flaw in airline security: over one billion flights made last year without stolen-passport check
International Women's Day 2014: The shocking statistics that show why it is still so important
Teacher shows sex tape featuring herself to pupils during class by mistake
Swarm of killer bees sting woman 1,000 times
Dead woman's body lay decomposing in garage for six years before she was found
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 3 Teacher shows sex tape featuring herself to pupils during class by mistake
- 4 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 5 Exclusive: UK banks in row over Yulia Tymoshenko 'millions'
iJobs Money & Business
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£55000 - £70000 per annum + benefits: Pro-Recruitment Group: In-House Corporat...
£80000 - £100000 per annum + benefits: Pro-Recruitment Group: In-House Opportu...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...