2018 will be another “tumultuous year” for business, with a reversal in London’s economic dominance over the UK, continued tension linked to the rise of the flexible economy and a ‘skills crunch’ due to falling immigration. These are the predictions of the Institute of Directors (IoD).
The IoD, which represents over 30,000 directors, expects to see progress continuing in the Brexit talks, with agreement between the UK and the EU on a transition deal by March, but also states that there are other significant trends business leaders need to be aware of this year.
Net migration will fall by at least 50,000, reaching 180,000 – the lowest for six years, bringing the Government closer to reaching its ‘tens of thousands’ target. While the rights of EU citizens in the UK were made more certain at the last round of Brexit talks in December, EU inward migration will continue to decline. Firms will, therefore, find it more difficult to recruit the people they need.