According to an annual survey, more than half of British employers expect the U.K will become a less attractive place to invest over the next five years, largely as a result of Brexit.
The Confederation of British Industry (CBI) and recruitment agency Pertemps Network Group said on Monday that the periodic survey of British employers suggests that overall, respondents expecting the UK to be a more attractive place to employ people in the next five years “has flipped from +16% in our 2015 survey to -21%.”
Thriving labour market now, but tomorrow?
The annual survey engaged 353 employers with a 1.2 million people workforce from August to October 2016.
The labour market in the U.K appears to be buoyant with over 41% of those surveyed expecting to hire more next year, with permanent jobs growing more dynamically than temporary workers. This year there was a 28% growth in the number of companies expanding their workforce.
However, existing and future skill gaps have risen to the number one concern for British businesses.
Prime concern: access to highly skilled labour
Over 50% of respondents believe Britain is a less attractive or much less attractive place to do business. However, for 29% of respondents, Britain will be a more attractive place to invest.
The chief concern among employers is access to highly skilled labour and fear of skill shortages; this was fifth on the list of 2015 concerns.
The CBI survey suggests that a rise in the minimum wage has led to a modest rise in income and the trend is likely to continue. 41% of employers say they will absorb the added cost of labour without passing it on to customers.