The United Kingdom has a partially regulated market economy that is highly developed. The currency of the United Kingdom, GBP, has the third highest value in the world. The United Kingdom has an unemployment rate of 5.3 percent, which is quite impressive considering the size of the working population. The service sector of the United Kingdom makes a major contribution to the national GDP of up to 79 percent.
Overview of the United Kingdom
The United Kingdom has suffered great losses due to the restrictions in place due to COVID-19. First time in 11 years, the United Kingdom went into recession in 2020. Before 2020, the United Kingdom was the 5th largest economy in the whole wide world. It is also the 2nd largest economy in Europe. The data after 2020 has not been collected. The United Kingdom was ranked 2nd largest financial center in the world, in 2020, by the Global Financial Centres Index.
Total population – 67,886,004
GDP – $3.124 trillion (£ 2.24 trillion)
As per the estimates of 2021, the United Kingdom has a nominal GDP of $3.124 trillion (£ 2.24 trillion), with its per capita income reaching $46,344 (£ 33,186.71). The nominal GDP is less than the PPP GDP of the United Kingdom. The PPP GDP is $3.174 trillion (£ 2.27 trillion) with a per capita income of $47,089 (£ 33,720.20). The pandemic of COVID-19 has had a great toll on the United Kingdom economy. The numbers have fallen to a large extent.
The service sector drives the market of the United Kingdom. The second-largest sector is the tourism sector in the United Kingdom. The automotive industry, aerospace industry, and space industry are very robust in the United Kingdom market. The pharmaceutical industry took a leap in 2020 as the demand skyrocketed due to the outbreak of coronavirus in the world.
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A brief glimpse of the industries
- Due to the pandemic of COVID-19, the science and technology sector of the United Kingdom must put their best minds and a lot of capital income into the sector. This increased tremendous job opportunities, especially in the drug design and discovery unit.
- The transport sector is currently facing a decline in its revenue as all the public transportation was halted for months, in some parts over a year. This has taken a toll on the sector, and it is estimated that it will take a few years to back up from this loss.
- The energy sector is one of the most revenue-generating sectors in the nation. The use of energy for industrial purposes declined in the past year while at the same time a rise was observed in the consumption of energy in households. Though it did not balance the income, the losses faced could have been worse.
Cost of living in the United Kingdom
The United Kingdom is one of the costliest nations in the world. This nation offers an excellent quality of life. It is a tough place for lower-class people to survive. The upper-middle-class and the upper class have a great lifestyle. It is a lively and beautiful nation. It can encompass bachelors as well as families.
Cost of Renting
The cost of renting in the United Kingdom is quite high. A rise has been observed over the past year in the renting cost all over the United Kingdom. The sudden rise was an effect of back migration due to the pandemic of COVID-19. On average, the rent for a monthly rental housing is US $2,000.
Cost of living depending upon your location
You may find that the cost of living in the United Kingdom is not consistent over the nation, but it varies according to the economic background of the location. Relocation to the hometowns due to the lockdown has hiked the cost of living. The cost varies based on the availability of resources as well.
- Cities categorized as Tier 1 cities are metropolitan cities like London, Greater Manchester, Aberdeen, etc.
- Cities categorized as Tier 2 cities are upcoming centers like Birmingham, Leeds, Edinburgh, etc.
- Cities categorized as Tier 3 cities are locations with notable growth potential like Bradford, Wolverhampton, Sheffield, etc.
Mentioned below are details regarding the cost of living in the leading Tier 1 and Tier 2 cities of the United Kingdom.
The top sectors that are expected to hire in 2021 in the United Kingdom are: -
Top skills in the United Kingdom
The United Kingdom is a very advanced nation. It looks for artists who can create authentic and beautiful work not only in the domain of arts but also in science, technology, finance, and many more. Graphic design, illustration, accounting, research, programming are a few skills that employers of the United Kingdom are always looking for.
Major skills and areas which have witnessed a recent growth rate
- Customer relations
- Software development
- Business analyst
The cost of hiring covers the expenses required to bring new personnel on board. These cover the costs right from letting out the advertisement for an open position to the candidate joining the team. Here are a few important aspects considered while accounting for the hiring cost –
- Interview process
- Time invested
Salary structure for various roles
The table below highlights the average salaries that are offered to employees in the United Kingdom according to different sectors: -
Employment laws in the United Kingdom
The United Kingdom has very strong and highly regulated employment laws. The United Kingdom is one of the safest nations to work in because of its strong oversight on employment discrepancies. Some of the factors taken into consideration while formulating the employment laws are –
- Age discrimination
- Equal pay
- Parental leave
- Working hours
The laws and regulations that govern the employment relationships in the United Kingdom are based upon
- Dismissal and employee grievances
- Employment contracts
- Protection of Employment Regulations 2006
How Can Skuad Help You with Hiring in the United Kingdom?
In order to hire the best talent in the United Kingdom, you must be prepared to conduct a time-consuming and resource-intensive process. There are several steps in the entire process that you must comply with. With Skuad’s unified employment platform, all your worries regarding the recruitment processes are taken care of. Connect with Skuad to know more.