London's Economy Today - Issue 204 - August 2019

The overview

• UK economy contracts in the second quarter of 2019
• Pound drops on Brexit fears
• London’s economic statistics continue to show strength in the capital

Economic indicators

• TfL passenger journeys increased in the last period. A total of 288.5 million passenger journeys were registered between 23 June and 20 July 2019; 8.5 million more than the previous period. 111.1 million of these journeys were Underground journeys and 177.4 million were bus journeys.
• Business activity at London private firms was higher in July (52.8) than in June (50.8). The Purchasing Managers’ Index (PMI) survey shows the monthly business trends at private sector firms. Index readings above 50.0 suggest a month-on-month increase with the majority of firms reporting increased activity, while readings below indicate a decrease.
• Most surveyors reported a fall in London house prices in the three months to July (-53). This index has remained negative since February 2016.

London's Economy Today supplement: Potential impacts of skills-based immigration policies in London

The Government recently set out plans for a ‘skills-based’ immigration system post-Brexit. To inform debate, GLA Economics has produced two Current Issues Notes aimed at understanding which areas of London’s labour market are likely to be most affected by the proposals. Drawing on a wide range of published data sources, they aim to shed light on the following questions:

• Current Issues Note 58: Which occupations may be most affected by the new £30,000 minimum salary and RQF3+ skills threshold proposals? Who works in these roles? How does the list of affected occupations change as the salary threshold is reduced towards £21,000?
• Current Issues Note 59: In which occupations is the greatest disruption most likely from the proposed £30,000 minimum salary and RQF3+ skills threshold proposals?

Current Issues Note 59 builds on the first part of Current Issues Note 58 by considering (i) the economic or social value of different occupations, (ii) the recent reliance on EEA workers and (iii) the ability of occupations to adjust to labour supply shortages. It therefore replicates at a London level economic analysis carried out by the Home Office on the Government’s proposals. An overview of the approach and key findings from both notes is also provided in the summary report.

London’s Economy Today data on the Datastore

• The main economic indicators for London are available to download from the Datastore.