What is the influence of BREXIT on the Hidden Job Market? 1. American IT research and advisory firm Gardner Group is going to move their office from London to Barcelona (where you see me in the photo at Piazza Catalunya in Barcelona).
2. Critical agencies that oversee Europe’s banks and pharmaceutical sector will move from London to cities on the Continent, political leaders in Brussels decided Monday, potentially ominous harbingers of how Britain’s impending exit from the European Union could diminish the country’s economic clout. The European Medicines Agency will move to Amsterdam, while the European Banking Authority is set to relocate to Paris.
3. Goldman Sachs CEO Blankfein announced that some of their London staff will move to Frankfurt respectively Paris.
While these announcements signal important moves by important organizations, their effect on the Hidden Job Market is not significant since we talk about small organizations with few executive positions. The real impact of BREXIT will be from organization with heavy manufacturing and R&D operations in the UK. Think about Japan only. In 2015 almost half of their Foreign Direct Investment went to the UK. Japanese companies, such as Nissan, were induced to invest in the UK in the 1980s specifically because of the promise of frictionless car sales into the rest of the EU and the tariff and customs free import of components from the single market area. Now, think about companies from South-Korea, Taiwan, the United States, just to name a few.
Figures from the British Office for National Statistics highlight the vulnerability of UK: More than two million UK employees work for companies that are reliant on investment from the EU. Therefore, mainland Europe will be seeing the creation of thousands of hidden executive jobs over the next years.