It is predicted that a huge upsurge in flexible and contract working could contribute a massive £148bn to the UK economy by 2030 according to research conducted into changing workplace trends. The research studied 16 globally important countries analysing their flexible working economies and extrapolating trend predictions out into the future.
Another key finding of the research was the discovery that 11% of all employment in the UK is currently connected with flexible working. This is actually the highest proportion of all the 16 countries studied. Interestingly whilst the UK has a healthy head start in terms of flexible work practises, this growth could actually be overtaken by other markets due to the effects of Brexit, leaving the UK lagging behind.
The research estimates there is likely to be a huge overall global boost to Gross Value Added by 2020 all down to flexible working practises. In the UK the £148bn economic boost represents a Gross Value Added boost of 64%, however this pales in comparison to some of the increases forecast elsewhere. China and India are forecast to experience enormous rises of 193% and 141% respectively while Europe’s strongest performer will actually be the Netherlands with 102% growth. The smaller projected growth in the UK could be explained by looking at the industry sectors acting as the main drivers of flexible working, namely financial services, IT and business services. All of these industries just so happen to be particularly susceptible to uncertainty in the markets caused by the on-going Brexit situation.
The benefits and reason for this huge upsurge in flexible working is that it basically saves businesses money. Flexible work situations can be an unbelievably 75% cheaper than traditional fixed place work situations. As well as slashing operating costs by reducing business overheads and making more efficient use of human resources, it can enhance productivity too. This effect ultimately feeds across the wider economy through supply chains to generate the massive boosts as forecast in this research.
Source: London Loves Business, Flexible Working to contribute £148bn to UK economy by 2030, 18th October 2018. https://londonlovesbusiness.com/flexible-working-to-contribute-148bn-to-uk-economy-by-2030/