London jobs market contracts after Article 50 scares

Market - Mohit Shah - Mar 20,2017

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london jobs market contracts after article 50 scares

According to Morgan McKinley London Employment Monitor, the number of available jobs within London has contracted by almost a quarter in the month of February.

This decrease in the number of jobs in London is a result of companies waiting for the U.K's exit discussions with the European Union.

Morgan McKinley London Employment Monitor reported, the London jobs market contracted after a significant decline in available jobs by 23 percent from 9,015 in January to 6,945 in February. Also, year-on-year, the number of jobs available shrunk by 17 percent.

U.K. Prime Minister, Theresa May, prepares to trigger Article 50 by the end of this month. This action has forced businesses to move their jobs away from the region.

According to Hakan Enver, operations director at Morgan McKinley Financial Services, “Brexit has pushed institutions into two camps".

Mr. Enver also stated, large institutions which are less able to respond quickly to political variations, are considering to advance out of the “worst case scenario”.  

It was also found out that the number of professionals seeking jobs was lesser, as per the research. There was a 12 percent decrease from 12,068 in January to a count of 10,626 in February.

One major aspect of the problem is that the Brexit talks will a time span of around two years, and also the trading relationship between the U.K. and the European Union is quite uncertain once the split is confirmed.

The UBS indicated how some euro zone firms may respond to Brexit. A total of 600 firms were asked regarding their plans by the UBS Evidence Lab Survey. It was revealed that almost a third of euro-zone companies anticipate to cut their investment in the United Kingdom.

A figure of 24 percent expect to trim their investment. Also, the firms which believe to relocate away from the U.K. was marked at 10%.