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Nearly 100,000 Jobs On The Cards By 2020 For Industry Sectors: PwC Research Shows

Nearly 100,000 Jobs On The Cards By 2020 For Industry Sectors: PwC Research Shows

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Nearly 100,000 Jobs On The Cards By 2020 For Industry Sectors: PwC Research Shows

– Nearly 50,000 new  UK manufacturing jobs on the cards by  2020
– Transport could see nearly 40,000 jobs boost and construction by 17,400
– GDP could be 2-3% higher by 2020 if financial services Gross Value Added (GVA – contribution to wider economy) rises by     £50bn between 2013/14 and 2020/21

New research launched today by PwC shows that industries such as manufacturing could see a combined surge of nearly 100,000 new jobs by 2020 if the UK financial services sector is supported by sustainable and well regulated growth.

PwC economists behind the new report, report, “Model Behaviour – the present and future of FS services in the UK”, depict two scenarios which could impact on job creation for the country. The first is based on a GDP rise of 2-3%, which would create up to 218,000 jobs across all industries. The second is based on a weaker contribution of the FS sector and a rise of just 0.2% in GDP which would see only 12,000 jobs created, including and outside of, financial services.

Scenario 1: is a vision for the future with a growing financial services sector. This is supported by a robust, but supportive, regulatory regime and economic and market conditions that are also beneficial to the financial services sector.  The sector grows at a substantial, but more sustainable rate before the 2007 crises.

Scenario 2: provides an alternative view of the financial services sector which is constrained by weaker economic and market conditions both domestically and globally, as well as a regulatory environment that does less to facilitate growth than that specified in scenario 1.

Coolin Desai, UK Head of Transportation & Logistics at PwC, commented:

“Our new research shows the fundamental link between growth in GDP and job creation in our core industries and the important role confidence has in securing that success. There is no doubt that industry areas were among the worst hit in the recession when confidence was at an all-time low.

“If we start to see the investment that we really need in these sectors then we can expect to see scenario one become a reality as business leaders will be able to secure the finance that they require to grow – and this in turn will boost confidence.

“The challenge for policymakers is the provision of effective UK and EU regulation that limits the likelihood and impact of any future crises, while allowing both the financial services sector and the wider economy to prosper.”

Impact of Scenario 1 on industry job creation in the UK between 2013 and 2020:

2013

2015

2020

Mining and agriculture

0.0

0.0

0.0

Manufacturing

5.6

7.1

45.6

Utilities

0.8

1.0

2.7

Construction

2.3

2.8

17.4

Retail

17.0

21.5

41.4

Transport

3.6

5.0

33.8

Services

35.7

45.9

67.1

Hotels and accommodation

2.3

2.9

4.8

Financial services*

2.2

2.7

16.5

Insurance*

3.0

3.6

22.2

Auxiliary financial services*

1.2

1.4

8.6

Restaurants and Leisure

0.6

0.7

4.0

Total

74.3

94.6

264.2

FS Total

6.4

7.7

47.3

Source: PwC analysis (numbers in thousands)
* Financial services + Insurance + Auxiliary financial services = Financial services sector total

Impact of Scenario 1 on regional job creation in the UK between 2013 and 2020:

North East

1.3

1.7

4.7

North West

5.4

6.9

19.3

Yorkshire and The Humber

4.2

5.4

15.0

East Midlands

2.2

2.8

7.8

West Midlands

3.9

5.0

14.0

East of England

4.3

5.5

15.3

London

37.2

47.3

132.1

South East

6.7

8.6

23.9

South West

4.7

6.0

16.7

Wales

1.5

1.8

5.2

Scotland

2.0

2.6

7.3

Northern Ireland

0.8

1.1

2.9

Total jobs created

74.3

94.6

264.2

Source: PwC analysis (numbers in thousands)
Additional report findings:

– Business bought more than £113bn of financial services in 2010 (most recent official data available).
– The FS sector purchases significant amounts of goods and services from other parts of the economy: in 2010, the sector bought more than £90bn worth of inputs from other parts of the economy. The biggest areas of demand from financial services are telecoms, IT, transport and catering.
– The FS sector generates a substantial amount of activity within itself such as investment banking and brokering: 2010 data suggests this figure is in excess of £20bn.

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