New research suggests that the number of young workers leaving London is increasing – partly because they feel that they have no opportunity to purchase a home in the capital.
The survey of 2,000 Londoners together with analysis of data obtained by the Office for National Statistics, was undertaken by job board Totaljobs with Geraint Johnes – Professor of Economics at Lancaster University.
It was found that 54% - more than one million professionals - have left London since 2014, with only 900,000 coming in. The biggest shortfall relates to workers aged between 25 and 34 years and amounts to a net loss of 88 workers every day. In the last five years there has been a 49% increase in those in their 30s leaving the capital, with 30% citing the city’s high living costs as a factor. More than a third of those aged 25-34 years surveyed by Totaljobs stated that they are now intending to leave the capital earlier than they initially planned.
Whilst one in five millennials are leaving in order to get their foot on the property ladder, one in four are leaving to start a family; 14% are looking for better schools; 12% wish to spend more time with their children; 23% want a slower pace of life and 16% are concerned about the crime rate in London.
Geraint Johnes said:
“This analysis has revealed a large increase in net migration out of London among those in their 30s and suggests that this trend is likely to accelerate into the future with 41% of 25-34 year olds looking to move out of the capital in the next six years. Reducing the cost of living is a major factor, while being able to afford to buy property and raise a family are major considerations in prompting a move. Unless a slowing housing market puts a brake on this trend, it’s likely to have important consequences for business. As young people add years of work experience to the stock of skills with which they came into the labour market, they become increasingly productive and climb the ladder, but as they leave, London businesses may find it harder to retain experienced staff and recruit into the more senior managerial roles.”
The Office for National Statistics data reveals a steep rise in the number of workers moving to Birmingham - at the top of the list - followed by Bristol and Manchester.
Many millennials say they want to be closer to their family and friends by returning to their hometown, whilst 29% state that job opportunities will be the deciding factor in where they end up.
Of the workers aged 25-34 years, 53% have already begun looking for jobs out of London and 42% of all Londoner’s think they will relocate within the decade - which would impact heavily on employers.
Jon Wilson - CEO at Totaljobs - said:
“Our research shows the challenge London’s employers face in holding onto some of their staff, and with widely reported skills shortages, it’s vital that they do so. While some factors may be out of their control, businesses focused on retaining talent can consider how they can encourage movers to settle within a commutable distance – be it through offering season ticket loans, more flexible working hours or the opportunity to work remotely.”
