Brexit 2017, Is Unemployment Falling?
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Brexit 2017, Is Unemployment Falling?

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The House of Commons has finally voted on and passed the historic bill regarding the triggering of article 50. After an astonishing 17 hours of debate the bill passed with 498 votes to 114, and the Prime Minister has confirmed that exit negotiations are to begin in earnest by the end of March.

Following the immediate doom and gloom of the referendum vote in July 2016, it has often been claimed that the UK leaving the Eu will have a damaging impact on Britain’s economy, some of the more outlandish claims have even raised the ridiculous prospect of civil war, and dark forecasts around skyrocketing unemployment and inflation. To date however these claims have not been borne out, and despite an initial sharp decline in the value of the pound on foreign currency markets, the UK’s economy has shown remarkable robustness.


Union_Jack_and_the_european_flag brexit jobs

Has Brexit Helped The Job Market?

There has been a better than expected response in business investment, and in the 3rd financial quarter this showed an increase of 0.9% against a predicted decline of approximately 1%. Unemployment too has fallen, with 37,000 more people in work between October and December than in the period of July to September, indeed the total number of people in work in December 2016 is up 302,000 from the year before and unemployment is at its lowest point since July – September 2005.

There has been a better than expected response in business investment, and in the 3rd financial quarter this showed an increase of 0.9% against a predicted decline of approximately 1%. Unemployment too has fallen, with 37,000 more people in work between October and December than in the period of July to September, indeed the total number of people in work in December 2016 is up 302,000 from the year before and unemployment is at its lowest point since July – September 2005.


More startup companies than ever are being born in the UK and between January and June 2016 more than 342,000 new businesses were registered with Companies House, this is certainly promising when compared with the 608,110 registered for the whole of 2015. It also seems London is beginning to lose its monopoly on startup businesses with 31% of the businesses registered being setup outside the capital, the South East and West Midlands proving to be popular startup destinations.

 

With London being the financial capital of Europe, arguably the world, and fast becoming a technological capital with companies like Facebook, Google, Snapchat and Apple all announcing their intent to expand their employee capacity within the UK its likely jobs will be in relative abundance in the immediate future, with now being the time to invest in recruitment and employees themselves.

 

The trend of falling unemployment may well be set to continue once the UK formally triggers article 50 and finally bades a belated farewell to the European Union. The UK is the 6th largest importer of goods in the world with imports exceeding $655 billion dollars a year, in Europe only France and Germany exceed the UK in imports. With countries queuing up to form free trade deals with the UK once article 50 is triggered, notable among them China, India, Japan, Canada and Australia, imports are likely to increase further.

Yet optimism seems justified, indeed more so as President Trump has already appeared to contradict the Obama administrations claims that Britain would be “at the back of the queue” when it came to any independent trade deals with the U.S.A, the notion that Britain would benefit from brexit seems to be increasing perceptibly.

By Nathan Mcdonough

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