Fewer tech workers now see the UK as first choice for relocation after Bresit

A new report shows that many international tech workers no longer see the U.K. as a top choice. Only six percent of those surveyed listed the U.K. as a top choice for relocation due to concerns over Brexit the report claims.

The report was carried out by the international recruiter Hired, focussing on tech workers within the U.S. tech industry. A majority of the respondents claimed that Brexit had dissuaded them from considering the U.K. as a prime place to relocate. They saw Brexit as making the U.K. a less desirable place to live.

Canada was the top choice for relocation outside the U.S. The most favorable EU destination was Germany, which was preferred to France or the Netherlands. However, globally workers are tempted to relocate to China as it offers advantages to other countries and is spending large sums to become the leader in AI as discussed in a recent Digital Journal article. Technode also claims in a recent article that China could dominate in AI in 2017.

The report suggests that the U.S. tech industry is feeling threatened by President Donald Trump's immigration policies. He has claimed that he wants to cut legal immigration by half within ten years. The number of green cards for extended family members would be reduced, and the system would be based more upon merit and skills than family ties. Many tech workers would no doubt prefer to relocate to a country that would allow their families to also move. U.S. employers are already struggling to recruit staff as less candidates are applying. The number of US-based companies requesting interviews with foreign workers outside the U.S. has declined 60 percent in comparison with 2016.

While Trump and his supporters want curbs on immigration, a large majority in the U.S. tech industry have positive views about immigration. The U.K. industry agrees with the U.S. view with 84 percent saying that immigration helps innovation. In the UK there is a vigorous debate about immigration. Ruth Davidson, Scottish Conservative leader said that PM Theresa May should drop her slogan of slashing immigration below 100,000 if she did not want to risk damaging the U.K. economy. Davidson said that as the U.K. was on the road to full employment growth potential would face greater limitations without being boosted by an influx of immigrants.

After Brexit IMF cuts forecast for Global Growth

The International Monetary Fund (IMF) cut its global growth forecasts on July 19 citing uncertainty over the economic effects of the recent Brexit vote which will see the UK leave the European Union (EU).

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Even before the Brexit vote, the IMF had cut its global growth outlook. The new forecasts represent the fifth time in the last 15 months that the IMF has cut forecasts of global economic growth. In its World Economic Outlook forecast the IMF now predicts global GDP to grow at 3.1 percent in 2016 and 3.4 percent in 2017 a decline of 0.1 percent for both years from the forecast in April.

While the IMF said that there had been recent improvements in Japan and the EU, and some recovery in commodity prices, that the Brexit vote increased uncertainty which took its toll on the investment outlook and consumer confidence. The chief IMF economist, Maury Obstfield, said that a day before the Brexit vote the IMF was ready to upgrade the 2016-17 growth projections slightly higher: "But Brexit has thrown a spanner in the works."

On the day before Britain's June 23 EU referendum, the IMF was "prepared to upgrade our 2016-17 global growth projections slightly," IMF chief economist Maury Obstfeld said in a statement. "But Brexit has thrown a spanner in the works." The IMF projected that the Brexit will slow global growth both this year and next.

The IMF projects the UK GDP to grow by 1.7 percent this year. This is down from the 1.9 percent it forecast in April. The forecast for 2017 is just 1.3 percent, down from 2.2 percent forecast in April. Of the 16 economies surveyed by the IMF, the reduction of 0.9 percent in the UK's 2017 forecast was only exceeded by that of Nigeria..

The Brexit was thought to have a negligible impact on the United States' economy. The IMF statement noted that the projections were made on the basis of a relatively benign settlement of the Brexit issue between the US and Europe, that presumes no major increase in economic barriers or further financial disruptions.

If there were severe disruptions as the negotiations hit snags, the UK-EU relationship would revert to World Trade Organization rules, and London could lose a significant portion of its financial services to the continental EU. If this were to happen, the UK would fall into recession and global growth would slow to 2.8 percent both in 2016 and 2017.

Under a mid-range scenario, with lower consumer confidence, and the UK losing some of its financial services sector to Europe, global growth would be 2.9 percent in 2016 and 3.1 percent in 2017. The recovery of the markets after the Brexit lead the IMF to choose the most benign model. A spokesperson for the UK Treasury said that while the Brexit vote represented a new phase for the UK economy, the focus would remain global: "Our absolute priority is to send a clear signal to businesses both here and across the world, that we are open for business and determined to keep Britain an attractive destination for investors from overseas."

The IMF outlook for China was relatively unchanged with a marginal improvement to 6.6 percent for 2016 but slowing to 6.2 percent in 2017. The recessions in Brazil and Russia are not as severe as previously thought, with both countries expected to return to positive growth in 2017 as commodity prices improve. The Fund urged countries to support demand and introduce structural reforms to help encourage growth.