The recriminations over Honda’s decision to close its first factory in 71 years continue. However, the problems in car manufacturing need to be set against buoyant job creation elsewhere. According to today’s ONS labour market report, the y/y increase for total employment accelerated to 1.38%. Full-time employees were up 2.07% y/y. The latter is perhaps a better indication of employers’ confidence in the economic outlook.
Vacancies also rose to a new high. By sector, information & communication has led the rise in vacancies overall with a huge increase over the past year (25.6% y/y).
In short, the UK’s strength in technology leaves it well placed to ride out Brexit. The recent rally in US and Chinese stock markets has been driven by smaller IT companies specialising in software, fintech, social media and idiosyncratic chips, to name a few examples. The UK has notable strengths in these areas.
Focussing on the losers is understandable in the current, turbulent political environment. A balanced assessment of the risks facing the UK will acknowledge the hits (to manufacturing, some financial services). However, the pace of technological change is accelerating, impacting on many service sectors. That will generate opportunities, which will work to the UK’s advantage.
- Car Manufacturing in turmoil
- UK will still adds jobs, due to strength in services
- IT vacancies soar
