Economic Report March 2017: The Story So Far

Apr 07, 2017

Thus far, we have had three full months of 2017. After the uncertainty of Brexit and the Trump administration in America there has been a fear of what could potentially come. But has the reality of the economic situation reflected this? In this article, we are going to look at the current state of the economy and what could potentially lie ahead for the rest of this year.

A mixed report

There are both positives and negatives that have emerged from the current economic period- for example although the forecast for growth in the UK economy has been better than people had previously predicted this has been coupled with increased inflation and this is likely to restrict consumer spending.

In terms of actual figures growth is predicted at 1.6% for this year and will go down to 1.4% in 2018. This potential reduction is being attributed to the uncertainty around Brexit and is also tied to increased costs.

Essentially the feeling is that Brexit will result in winners and losers- the construction industry was facing challenges even before Brexit but there is the fear it will suffer in terms of a reduced workforce and lower investment. Conversely there is the feeling that manufacturing and services are going to be helped thanks to the weaker pound.

Automation

Brexit is just one factor when it comes to uncertainty in the jobs market- there is the fear that by 2030 up to 30% of jobs in the UK could be at risk due to the process of automation and could create increased inequality.

Again, there is a flip side of that- people also argue that increased automation also means increased productivity. There is also the argument that service industry jobs are not so easy to automate and therefore there would be increased vacancies in this department.

Uncertainty

Socrates once said that “true knowledge is knowing you know nothing”. It is certainly true of the current economic situation in that we are dealing with a situation that may be clearer in six months, two years or ten years and therefore being able to adapt to it is a difficult scenario.

What will be interesting is to see what reassurances that businesses will be given and whether any will receive the concessions that they were hoping for during Brexit. Issues such as whether workers will be able to remain in the UK, whether tariffs will be imposed and a number of other factors could potentially play in to how companies may or may not be able to take advantage of the current situation.

In short, the likelihood is that the future is unlikely to be as bright as some of the more optimistic reports nor as bleak as the most pessimistic. What is important is that companies remain vigilant and to look beyond the rhetoric and act according to events as they occur, helping to safeguard business in both the short and long term.

One thing for sure is that companies will always need the key high achieving members in their teams,the very best sales,marketing and brand builders,as well as the top strategic thinkers and financial experts.

Michael Dell ,founder of Dell Computers once said that he personally takes responsibility to always be on the lookout for top talent and encourages other business owners and the top echelons to do the same.

Jim Collins in his book " Good to Great”, a study of some of the worlds most successful companies,mentions that many identify what he calls a “Virtual Bench” meaning keep recruiting exceptional people and put them on the bench until you need them

A good Executive Search / Headhunting company could be very useful in identifying and recruiting these hard to find talented individuals.

Please have a look at thislinkto see how we could help you in your pursuit for the very best talent in your marketplace.



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