Brexit and the UK labour market

IPPR analysis reveals slump in finance sector recruitment in aftermath of Brexit vote

Article

Using exclusive and up-to-the-minute data, IPPR analysis shows that other than an uncharacteristic downturn in job postings in the finance sector – particularly in London – employer recruitment patterns in the two months before and after the Brexit vote were in line with previous trends across all parts of the economy.

IPPR and Burning Glass Technologies have, working in partnership, produced new analysis of online job vacancies both before and after the UK’s referendum vote to leave the European Union. The analysis compares jobs advertised online in key sectors across England in May/June and July/August 2016 with the same periods in the previous three years (2013, 2014 and 2015). This data offers some of the first insights into labour market trends ahead of official lagged indicators.

The analysis finds that there was an uncharacteristic downturn in job postings in the finance sector between May/June and July/August in 2016 – particularly in the Greater London region. For example, there was a 13.6 per cent drop in postings for jobs in the finance sector in London, for roles including chief executives and senior officials, managers, and quality and regulatory professionals. Job postings for the finance sector as a percentage of those across the whole economy decreased between May/June and July/August 2016 across every region in England – the only year in the past four in which this trend can be observed. Our analysis finds that, across most sectors of the labour market, employer recruitment patterns in the two months before and after the Brexit vote (May/June and July/August) were in line with previous trends.

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