Why London’s movers and shakers are moving on
Historically, a third of UK graduates set out for London after completing their studies, drawn to the prospect of higher salaries, the London lifestyle or a particular job offer. This ‘brain drain’ to the capital could be set to reverse, as changing mobility trends show that an increasing number of young people are looking to leave the capital.
New research from Totaljobs and Professor of Economics, Geraint Johnes, has found that one million young workers are set to leave London by the age of 33.
The team at Totaljobs has worked alongside Geraint to analyse data from the Office of National Statistics (ONS), as well as gather insights from 2,000 Londoners.
By mapping out these changing trends, London businesses can plan ahead and offset the impact, while regional employers can maximise on this opportunity, as more candidates set their sights outside of the capital.
Millennials are leaving London at a younger age
The average age of a worker leaving London is now 32 and eight months, an age which is set to get even younger if the trend continues. Since 2017, ONS data suggests a 26% rise in the number of twentysomethings leaving the capital, and a 49% increase in net outbound migration of those in their thirties.
Currently, a quarter of 25-34 year olds are planning a move out of London. ONS data shows that almost two thirds (60%) of those who have previously moved out of London settled in non-commutable areas, meaning that they’re no longer part of the capital’s workforce. If this continues, London businesses could be losing vital millennial talent, many of which are at mid-management level. With 62% of London businesses reporting recruitment challenges, the flight risk among the capital’s workforce shows that holding onto talent may become high priority
Why are millennials moving out of London?
It comes down to future-planning for many of those between 25 and 34 years old. 30% want to reduce the costs of living, and believe their pockets will benefit by moving out of London. Nearly a quarter (23%) want to start a family, while 12% want to spend more time with their family. The quality of schools is being considered too (14%) and a fifth are looking to become homeowners.
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.
Though some factors may be out of their control, businesses focused on retention 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.
For those who can’t be swayed, employers can offset the impact on their business through clear succession plans. Investing in training and mentorship programmes can ensure those leaving pass on their knowledge and expertise to more junior colleagues.
However, this migration trend also presents a real opportunity for employers based outside of London to attract highly skilled and experienced people looking to relocate. With local job opportunities being the deciding factor for a quarter of movers, regional employers should look at the most common reasons people are looking to move out of the capital to create enticing relocation packages.
Jon WilsonCEO at Totaljobs
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.
Geraint JohnesProfessor of Economics at Lancaster University
Download the report to find out more
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