UK reset: A better jobs and industrial mix to support greater economic stability

Time for a reset?

As nations around the world continue to contend with the economic fallout from the conflict in Ukraine, it might be time to pause for a moment. The latest international economic crisis is just the latest in a treadmill of problems that seem to have created global turbulence. As we move forward, there is a clear desire to see greater stability and for the world to stop staggering from one crisis to another.

In the UK, the way is paved for a new Prime Minister to take office in September and many business leaders are looking for a reset after a period of erratic and turbulent government. One of the key economic objectives for the UK, as well as other countries around the world, including the USA, must be to rebalance the economy, a move that will have very positive implications for the jobs market.

A stable and healthy economy

One of the underlying factors that determine the stability of a country’s economy is its industrial mix. When it is well balanced, economic growth is sustainable in the long-term, and the economy is likely to be growing across different sectors. Other highly desirable characteristics of a stable and healthy economy include:

• A good trade balance between imports and exports
• A stable and affordable housing market, avoiding unsustainable growth
• Sustainable levels of business lending and government borrowing
• An even distribution of economic activity and prosperity across geographical regions
• Avoiding one of the hallmarks of economic instability – cycles of ‘boom and bust’

Assessed against these economic health indicators, the UK and the US are not doing very well and there are instabilities within their economies.

Australia – a leader in economic stability

Covid of course has dominated the economic conversation, so to get a perspective that is free from distortions related to the pandemic it is worth looking at the data for 2019. In early 2020 USA Today reported on its Best Countries global survey to identify the most economically stable countries.

Ranked by the perceptions, the Best Countries report is based on a survey of more than 20,000 global citizens from four regions to assess perceptions of 80 countries on 75 different metrics. Ranked by economic stability, the top ten nations in the survey were:

1. Switzerland
2. Canada
3. Germany
4. Denmark
5. Japan
6. Australia
7. Sweden
8. Netherlands
9. Norway
10. Austria

With seven out of the top ten being northern European nations, it seems that the economics of these countries and the region is something of a model for others. Australia and Japan placed well for APAC. It is, however, interesting to note that the USA and the UK ranked 15 and 16 respectively on the survey.

Why is a more stable economy good for recruiters?

It might be argued that economic turbulence and job market volatility is good for recruitment, helping to keep the market buoyant and throwing up opportunities for the most entrepreneurial leaders and innovative companies.

However, there’s more to it than that. A more stable economy, with a balanced industrial mix would:

• Have a better range of job opportunities
• Rely less on service sector jobs
• Be less susceptible to talent shortages

Meet the challenges of the job market with ETZ

Agencies are better prepared for the challenges of today’s recruitment market with ETZ.

Whether we get a reset and a more stable job market or not remains to be seen. Either way, whatever challenges the employment market brings, you can be sure ETZ’s leading timesheet, invoicing and payment solution, streamlines the back office processing of your recruitment agency.

ETZ is the RecTech partner of choice, helping agencies to navigate the pitfalls and obtain excellent value from technology. To find out more, call us on 0800 311 2266 or book a demo.