40% of International Financial Services in Ireland expect to increase employment as result of Brexit

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40% of International Financial Services in Ireland expect to increase employment as result of Brexit

Brexit is expected to lead to an increase in overall employment in the Irish Financial Services (IFS) industry as certainty over passporting and employment rights amongst internationally mobile employees leads many companies to expect job growth in their enterprises as a result...

While the majority of respondents (52%) did not expect Brexit to have a direct influence on their future employment levels, 40% said they expected an increase.  Only 7.5% said that they anticipated a negative effect on employment.

The survey also finds the industry in good health, with employment in responding companies rising by 4.6% overall in the twelve months between December 2015 and 2016.

The research report, carried out by Finance Dublin in partnership with Deloitte Ireland, based on survey research conducted from March to May of this year amongst 50 companies (representing 51% of total IFSC employment in Ireland) confirms the expectation that the international financial services industry will be a major beneficiary of Brexit.

The main issues and opportunities facing IFS companies in 2017 were also identified and the most important issue facing the IFS industry is the Regulatory Environment, with 50% rating it as ‘very high’ in term of importance regarding future IFS prospects. This is followed by Taxation with 39% rating it as ‘very high’ importance.  These are followed by ‘Sector Business Conditions’ (29.7%); ‘Global markets and economy’ (22%), ‘Fintech’ (20.8%), and finally ‘Brexit’ 14.0%.

According to a respondent, reflecting typical views in the survey, “the Regulatory environment and the ability to attract overseas talent are the two critical issues which will determine how successful Ireland is at attracting business leaving the UK."

Commenting on the Survey findings David Dalton, Financial Services Lead Partner, Deloitte Ireland said;

“The expectation that Ireland will be a beneficiary of Brexit in Financial Services is backed up the 40% of firms expecting to see growth in headcount as result of Brexit, but the regulatory environment and availability of talent are an important issues in realising this. Of particular note is the high rating Ireland receives as a location for Fintech by the international firms located here compared to other Fintech hubs. This also relates to the relative importance of Robotics, Regtech, AI and Blockchain as technologies of importance to the future of these firms.”

The responding group, representing 50 IFS companies in Ireland surveyed from March to May 2017 employed 14,700 staff, covering 51% of estimated total International financial Services (IFS) employment in Ireland. Amongst the firms surveyed, employment growth in 2016 was robust, with a growth in employment numbers overall of 4.6%. This represents 625 net new jobs on a base of 14,075.

The Survey has been conducted by Finance Dublin, to ensure it offers a statistically significant sample of the population – Ireland's IFS industry. The sample was based on the 500 IFS companies listed and profiled in the Finance Dublin Yearbook 2017.

Article Published: 24/08/2017