Study: The UK Startup Job Market’s Growth Post-Brexit

The future growth of UK startups has been a contentious topic as of recent months. With the UK’s decision to leave the European Union, British startups will lose access to the European Investment Fund which has been vital in ensuring the UK’s startup boom. However, Chancellor Philip Hammond has reaffirmed the pledge made by the UK government to support startups post-Brexit, going some way to reassure businesses. Job meta-search engine Joblift has analyzed the UK’s startup job market and compared the growth in the UK with its European counterpart Germany. Furthermore, Joblift has investigated the UK’s startup landscape and has found that Manchester beats London in terms of startup vacancy growth.

The UK’s startup job market has increased by 1% on average and Manchester takes over London with an average growth of 7%.

Overall, the UK’s startup job market has seen an average monthly increase of 1% in the last 12 months, which is on par with the 1% increase in the UK’s job market as a whole. According to Joblift, almost 90,000 jobs in startups have been posted since last July, with London housing 51% of all startup postings. Despite London hosting 45,761 startup vacancies in the last year, Manchester – the city which comes in the second position with 2,178 vacancies – has seen a substantial growth of 7% in postings, compared to London’s 3%. The Information and Communication Technology (ICT) sector advertises the most startup vacancies with 7,845 postings in the last year. This sector is still increasing rapidly and has seen an average monthly increase in vacancies of 4%. The highest average increase is seen in Insurance and Finance, with a 8% average monthly growth, despite only posting 1,333 jobs in the last year – this is no doubt reflective of the increase in FinTech vacancies.

Germany Shows Three Times More Monthly Growth In Startup Jobs Than The UK

According to Joblift’s studies, Germany has advertised just over 75,000 startup jobs in the last year and seen an average monthly increase of 3% in vacancies – three times more than the UK’s 1%. Germany’s startup job market is also increasing faster than the German job market as a whole which has seen an average monthly increase of 2%, highlighting the startup boost happening in the UK’s European rival. Although, like the UK, Germany’s largest startup sector is ICT with 18,870 postings, the largest difference in sector growth is seen in Legal, Human Resources, and Social Services. Startup vacancies in this sector have seen an average increase of 9% in Germany, 9 times more than the UK’s 1% growth. Similarly, startup jobs in the Management, Policy and Governance sector have increased by three times as much in Germany as in the UK with Germany seeing a 9% increase compared to 3% in the UK.

Insurance and Finance startup roles have seen an average increase of 4% in Germany, meaning that in this sector the UK has twice as much growth, with an average 8% increase.

London & Manchester Have Five Times More Startup Vacancy Growth Than Competitors Berlin & Munich

Joblift also analyzed the top two startup cities in both countries; London and Manchester in the UK, and Berlin and Munich in Germany. Despite Germany’s overall startup increase, when looking into the top startup hubs in these countries, studies show that London and Manchester are still ahead of their German counterparts, with five times more combined growth than Berlin and Munich. Combined, the two UK cities have increased on average by 5% compared to Berlin and Munich’s combined average increase of 1%. Looking at the capital cities alone, London has seen an average increase of 3%, three times more than Berlin’s 1%. The British capital also houses twice as many startup jobs as Berlin with 45,761 vacancies compared to 21,485 in the German city.

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