Global macro overview for 13/08/2018
The organization associating heads of human resources departments in British companies informed on Monday that the decrease in the number of migrants coming to the UK with the EU caused by next year’s Brexit, deepened the problems of employers with finding appropriate employees.
The Chartered Institute of Personnel and Development (CIPD) report emphasizes that the demand for new employees exceeds the number of people available on the market, and employers increasingly choose to increase their employees’ remuneration, creating incentives for staying in their current workplace. According to the calculations, there are currently 20 people per one job not requiring professional qualifications, four less than a year earlier, and for positions for people with higher education – only six instead of eight, which limits the choice of the right candidate. At the same time, up to two-thirds of employers reported that they had problems filling certain jobs.
CIPD remarked that the growing problems in the labor market are directly related to the reduced interest in working in Great Britain on the part of migrants from the other 27 Member States of the European Union in the face of next year’s Brexit. During the year from March 2017 to March 2018, the number of employees from the European Union residing in the country increased by only 7,000. people, in comparison with the increase by as much as 148 thousand. people a year earlier.
The United Kingdom should leave the European Union on March 29, 2019. According to the transitional agreement, all existing rules, including those concerning the free movement of people, will be in force until December 31, 2020.
Let’s now take a look at the GBP/USD technical picture at the H4 time frame. The price is still trading inside the range between the levels of 1.2733 – 1.2793 in extremly oversold market conditions. In order for bulls to control the market again, the price would have to break through the level of 1.2956.