Why jobs growth is good for serviced apartments

A strong economy has positive implications for every corner of the UK; from employment figures to how many hotel rooms are full and apartments to let. Job figures are an excellent indicator of a confident economy and bode well for a positive 2015 in the service industry.

All the numbers point towards the fact that 2015 is going to be a great year for many British households. Wages are set to start increasing again while prices stay low. Analysts at Deloitte, in their latest consumer tracker, says households are, on average, bringing home more money with pay rises in the last quarter.  Wage growth hit 3% in the UK last month suggesting that for many working in professional sectors there will be “less pressure on disposable incomes”.

Take home pay is just one factor contributing to that confidence. The Office for Budget Responsibility has predicted a good year for UK GDP with it continuing in 2016 as well. Foreign firms are investing in the UK, the Euro zone is recovering, there’s cheaper oil and a strong pound. People feel as though they have more money to spend.

Employment figures across the UK are improving. In April, the numbers for out of work fell to 5.6%, its lowest level since 2008. There are certain key sectors where employment is at its strongest. In the City, firms says there are 32% more full time permanent roles available than at the same period last year. Short term contracts are disappearing, according to recruiter Robert Walters. That shift from temporary employment to permanent roles is symptomatic of a greater degree of confidence in the economy. Across the technology sector, especially in FinTechs where there has been a raft of new venture capital investment, new jobs are being created.

New staff are also basking in the new economic landscape. According to KPMG, salaries for the newest members of staff rose at their fastest pace this spring. Recruiters reported a rising demand from employers looking to fill roles. This demand for skilled workers pushes up the rate of pay  as competition heightens. As unemployment falls the number of highly skilled workers looking for jobs decreases so wages can be pushed higher.

All these factors point to one thing; the UK economy is doing well and that bounce is being felt right down towards average workers. They can command higher wages, feel more secure in their jobs. That confidence doesn’t stop at the door of business, instead it sweeps across different industries, including the service industry, boosting the economy further.

The service industry, like Clarendon which provides serviced apartments in London with many business customers, benefits from commerce having more money to spend. When business feels confident it is more likely to hire new members of staff, so relocation rates are likely to increase, it is happier to “speculate to accumulate” so business trips are likely to be more frequent. This doesn’t simply benefit Clarendon but restaurants, cafes, bars, attractions and all those other service industries that benefit when the economy is strong.

Jobs figures and talk of business confidence might seem to be a positive news story that only affects the city; in fact the news has a positive effect at every corner of the economy and is one that is welcomed.



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Share with us any information that might help us with your request
+44 (0) 1784 489 200  |  enquiries@clarendonuk.com  |  Frequently Asked Questions

Please check your entries - from is a required field, to is a required field, from date must be in the future and to date must be after the from date
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