Job relocations drop to 7,000, a fraction of some estimates; Public announcements of plans to shift capital have dried up
The post-Brexit exodus of bankers from the City of London hasn’t come to pass.
The
total number of Brexit-related job relocations from the U.K. to other
parts of Europe since the 2016 referendum now stands at just over 7,000,
according to the latest data from consultancy EY. That’s a fraction of
some estimates made shortly after the vote amid huge uncertainty about
the implications.
Those estimates varied widely. A 2016 PwC report commissioned by lobby group TheCityUK calculated up to 100,000 financial services jobs could be put at risk, the same year that consultancy Oliver Wyman estimated as many as 40,000
could go in another report for TheCityUK. Think-tank Bruegel said in
2018 that London could ultimately lose 10,000 banking posts and 20,000
roles in the financial services industry.
In the months following the vote, announced job
moves soared as high as 12,500 as banks and businesses braced for a
chaotic divorce. But by December 2021 the number of expected total
relocations had tumbled to 7,400.
The flight of
capital out of London has also faltered. While 24 firms have publicly
said they will shift just over 1.3 trillion pounds ($1.7 trillion) of
U.K. assets into the European Union since the vote, that figure has
remained broadly unchanged over the past 18 months, EY said in its
latest -- and final -- Financial Services Brexit Tracker.
The
report doesn’t track how many new jobs the City of London has missed
out on as a result of its new status. But it underlines how the worst
job upheavals from the U.K.’s break with the 27-member states haven’t
immediately come to pass in the Square Mile, some 14 months after
Britain broke away from the bloc.
“Most
firms finalized the majority of essential operational moves well ahead
of the 2020 Brexit deadline and were able to serve clients in the U.K.
and EU without undue disruption,” said Omar Ali, EY’s financial services
leader for Europe, the Middle East, India and Africa. “While numbers
have now stabilized, there will remain a degree of fluidity for some
years to come.”...
more at Bloomberg
© Bloomberg
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article