London workers are more apprehensive about their prospects of securing a new job compared to individuals in other regions of England, indicating a sense of gloom about the economy's
outlook. A survey conducted by Deltapoll on behalf of Bloomberg revealed that approximately 38% of Londoners expressed a lack of confidence in their ability to find employment within three months if they were to lose their current job. This figure was 11 points higher than those in the rest of the South, 6 points above the Midlands, and 5 points higher than individuals in the North. Only respondents in Scotland exhibited greater pessimism.
These findings suggest that London, which has historically driven economic prosperity in the UK, has experienced a loss of momentum due to soaring living costs and the growing trend of remote work, reducing the need for commuting to city centers. Concerns about the job market may also contribute to this sentiment, following an unexpected rise in the national unemployment rate to 4%. Official data published this week indicates that London and the West Midlands have the highest unemployment rates in England.
Tony Wilson, director of the Institute for Employment Studies, suggests that the relative gloom in London could stem from the difference between living in the city and working there. Londoners are more likely to face unemployment and less likely to be employed compared to individuals residing elsewhere. While those in higher-paid jobs in London may believe they have a decent chance of finding alternative employment if their current job ends, individuals working in the visitor economy, hospitality, and retail sectors may feel more vulnerable to a wider slowdown and struggle to secure new positions in their respective industries.
Dan Harris, director of recruitment company Robert Walters, suggests that remote work and the relocation of jobs to cheaper destinations outside the UK may have heightened the sense of competition among London workers. In the tech sector, offshoring to countries like Poland has occurred due to cost savings and the availability of talent. Additionally, banks traditionally concentrated in London are establishing hubs in Manchester, which appear attractive to businesses seeking cost savings in the current financial climate.
Overall, 48% of UK workers expressed confidence in their ability to find jobs under similar circumstances, while 32% exhibited a lack of confidence. Men displayed higher confidence levels at 53%, surpassing women by 10 points. Younger individuals aged 18-34 exhibited the highest level of confidence, while those aged 35-54 displayed the least confidence.
The survey was conducted online, interviewing 1,617 British adults from July 7-10. The data was weighted to be representative of the adult British population, with a margin of error of plus or minus 2.4% for the entire survey, and 7.4% for the London sample due to its smaller size. Photo by Phil Whitehouse, Wikimedia commons.