Britain's Got No Talent: Half of U.K. Expats Threaten to Exit

Britain's Got No Talent: Half of U.K. Expats Threaten to Exit

www.bloomberg.com

Almost half of U.K.-based foreign professionals are considering leaving as they endure rising living expenses and the recession, more than in any other country, a survey by HSBC Holdings Plc showed. Britain’s worst economic contraction since 1979 has already pushed up unemployment, and the pound’s 17 percent drop against the dollar in the past year has also curbed the value of expats’ U.K. earnings. Business failures will rise to a record this year. Almost 100 companies will fail every day this year in Britain, pushing the total to 36,200 for the year, BDO Stoy Hayward said. The number w

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Almost 100 companies will fail every day this year in Britain??, Pushing the total to 36,200 for the year, The number will reach 40,400 in 2010.

So they will all move to China or India? This would have a catastrophic effect on the UK’s economy. With rising unemployment Britain’s more than 2 million jobless have been warned that they could only be half way through the cycle of rising unemployment and it could take seven years to reverse the damage done by the recession,

They are also facing weaker earnings growth and reduced perceived wealth levels. Where does this leave the Country. I guess they will do a trade off and find cheap labor in China.

Nowhere in the world, it seems is immune. I’m surprised Gordon Brown is still in office. Brittan needs new ideas and a sound structure.

This Casino type economic 101 simply will never work. Most companies in the US left in the 90’s for cheaper labor. It has backfired.

We must also look at the emotional trauma not seen since the Great Depression in Brittan.

www.bloomberg.com
(visit the link for the full news article)

Hey Great post but....
Can you show me the links that back this statement up?
This one here
"Most companies in the US left in the 90’s for cheaper labor."

I would love to read your source on that thanks
Slay

reply to post by wonderworld

I'm not quite sure where they will go. Lets be clear, a lot of these people have been hit by the understandable (and some would say welcome) shake out from the 'Investment and financial services sector') in London. Unless countries, other than say Singapore, are about to move into Hedge Funds or Securitisation in a big way, I think most of them will be looking at a career change. Overall unemployment in the UK is still lower than that of Spain, France, Italy, and the US. I do agree However, that we need to move away from an industry based on selling weird and often toxic financial products.

I keep getting this mental picture of Indian police stopping a truck on the road to Mumbai and a dozen smuggled white guys all jumping out the back and running away.

The same is happening in the US too but the politicians, and a lot of the boardroom boys in big corps are too dumb, or maybe just don't care, about what is happening. So many well paid manufacturing jobs have been outsourced to developing countries, simply for cheap labour. As the well and skilled jobs go overseas, so the wage base drops as those people losing their jobs usually end up in lower paid unskilled work. As a result. they cannot afford the luxury goods they once used to manufacture and buy. If they cannot afford them, eventually the demand drops and even the imported goods slow down.
So, lower wages mean less income tax and less spending. The boardroom boys will give themselves a nice fat bonus for slashing the labour costs and making even more profit for the big shareholders, but in the end it's only ever going to be a short term gravy train and it'll hit the economy badly along the way. Sustainability is a dirty word in these days of get rich quick financial outlooks. If I could see this coming a decade and a half ago, then you'd think the corporations and politicians would too, after all many of them have their business degrees and doctorates etc...... or maybe the simple greed trumps the good of the workers and, ultimately, the country?

It's times like this that I'm glad I don't manufacture anything but own a business which serves organizations of any kind no matter where they are globally...

Good find...

reply to post by HunkaHunka



As long as there are PCs and networks I'm good to.
I have my own little shop.

Originally posted by SLAYER69
Hey Great post but....
Can you show me the links that back this statement up?
This one here
"Most companies in the US left in the 90’s for cheaper labor."

I would love to read your source on that thanks
Slay

Sure, Here is one of thousands. It's upsetting they are taking all our jobs.


Cheap labor draws U.S. business south

I worked at GE when they packed up and headed to the border.

An explanation: The group provides space and a wide variety of services to big foreign manufacturing companies that don't want to actually incorporate in Mexico, hire Mexican workers onto their own payrolls, buy or lease their own land, pay taxes or deal with the Mexican government or legal systems.

The companies have no legal liability and they don't pay taxes. They don't even lease land from The Offshore Group, avoiding any connection with the Mexican government.

Almost all maquiladoras are foreign owned. They include BMW, Ford, General Motors, General Electric Co., Honeywell, Mitsubishi, Nissan, Samsung, Xerox and Sony.

The word maquiladora comes from the Spanish word "maquilar" which referred to the milling of wheat into flour by a middleman. Over time it grew to mean any part of the manufacturing process carried out by someone other than the original manufacturer.

Maquiladoras make up a huge chunk of Mexico's manufacturing sector and employ more than 1.2 million workers. The industry generates more revenue in Mexico than oil or tourism - an estimated $88 billion in 2004, according to the organization NAFTA Works.
The first maquiladoras were established in 1966 along the U.S.-Mexico border and became notorious for hiring large numbers of poor Mexicans, particularly women and girls, in plants with poor working conditions and low wages.

Today, maquiladoras operate all over Mexico, producing everything from furniture and chemical products to toys, sporting goods, shoes and electronics

.

cronkitezine.asu.edu...

reply to post by HunkaHunka


It's weird isnt it. My job gets better when the economy is in a slump. sad but true. I work for the VA property management and when they privatized it just brings on more foreclosures to my desk. Some are sad and others are not. Long story.

reply to post by Britguy


Lower wages and increased tax hikes and interest rates will lead us to inflation.

We could all se a 25% annual inflation, that in 3 yeard time would cause hyperinflation.

Originally posted by SLAYER69
Hey Great post but....
Can you show me the links that back this statement up?
This one here
"Most companies in the US left in the 90’s for cheaper labor."

I would love to read your source on that thanks
Slay

In the NE corridor, what used to be the manufacturing base for the entire US it is almost barren as to manufacturing. Most of the large companies left in the 70's and 80's and what is left is a pittance compared to what it was. The US manufacturing base is gone. Try to find a certified tool maker that is employed full time. I can't tell you how many 70 and 80 year olds get offered temp jobs to complete a tooling job for small companies.
Heres just one example of how crazy it is.
I worked part time for a small machine shop. We made the belt hooks for those tape measures most people use. On it was stamped 'Made In The USA'. Well that was true but the tape they where attached too was made in China for Stanley Works. It's that way all over this area! Here in Connecticut 5000 private businesses and corporate franchises are closing their doors every month. It's not an exaggeration!!

Zindo

reply to post by wonderworld


[atsimg]http://files.abovetopsecret.com/images/member/8ac19c387599.jpg[/atsimg]

Oh I hear you but all too often too many statements are made that only increase the confusion of the reality of the situation. Yes the US has lost manufacturing jobs. Yes our industry is on the decline. No arguments there. But there are many ways to judge the situation. I even wrote a thread on topic Here I understand all too well. No need to preach to the choir.

Most of what the US does produce are higher end higher technology that the average consumer would not see or is even aware of. They would not find them on the shelves at Walmart. Here's the kicker they are not all defense related either.

World’s largest manufacturer

World’s largest manufacturer
Published 6/23/09
Filed under: Miscellaneous, Politics

What country is the world’s largest manufacturer by a huge margin? If you have a kid, you would think it must be China — I don’t know the last time I saw I toy (or anything else, really) that wasn’t made there.

Wrong.

Accounting for more than 20% of the world’s total manufacturing output is the United States.

Japan is a distant second at just over 13%. Then China (12%), and Germany (8.2%). Then, well, everyone else. (Data come from the Dept. of Labor and the United Nations.)

Revenue Leaders by Nation
Country/Province Number of Companies Revenue Total (Millions) Average Company Revenue Growth (%)*
United States 290 $5,386,377 10.50
Japan 233 $3,624,074 6.74
Germany 40 $1,269,963 11.97
France 48 $1,103,959 4.23
United Kingdom 36 $882,521 17.30
China 36 $606,892 19.74
Netherlands 13 $599,939 7.97
South Korea 37 $574,252 27.46
Switzerland 21 $364,031 2.90
Italy 15 $356,603 5.75
Russia 8 $338,870 32.37
Canada 27 $335,500 24.20
Taiwan 29 $328,564 5.47
India 12 $206,903 48.20
Finland 16 $189,505 0.56
Brazil 10 $184,523 23.04
Sweden 14 $161,619 6.29
Spain 6 $149,468 7.73
Luxembourg 3 $145,569 14.33
Australia 12 $143,580 38.52
*Manufacturers that did not appear on the 2008 IW 1000 list were not included in revenue growth averages.


Interesting perspective here.
Does America Need to Make Things?

It's not only the foreign nationals working in the UK who want to leave, from what I have heard many of the residents do too. Makes me feel sorry for Australia because that's who is going to get the influx

We have increasingly large Brit populations here in the US, I have no problem with welcoming them over here as long as they leave the idiotic notions that destroyed their own country behind them.

Yes we like guns, hard work, and a social welfare system that is kept in check - no free apartments for pregnant teens, no new car every three years on Motability, and you pay for your own healthcare.

Don't like it? Canada is right down the hall, second door on the left.

This could be another South Africa type situation in years to come, where all the well educated high revenue generators have fled the country, leaving the social parasites with no one to live off.

[edit on 24-6-2009 by Retseh]

It's going to come down to owning a few acres, sustainable living in a small cottage/cob/cabin with a garden and a few chickens. Those people will be the one's who survive all this crap.

reply to post by Fang


I heard they may split to China or India. They would make bank with the cheap almost nonexistant labor costs.

I still think Nike and Adidas are traitors. They used to be made in the US.

The plants are still in Oregon State but send off all products to be made over seas, et still charge over 100 bucks to buy them. It's a big scam.

reply to post by SLAYER69


The chart may be correct. The Companies often keep offices in the US and ship off the products to be manufactures in Asia, India, etc.

Kind of like Nike and Adidas, as I mentioned below. Heading South for chep labor will continue, until we put a stop to it. It may even cause a trade war.

You can still find GE offices in the US but not GDP coming from those plants.

reply to post by wonderworld


Oh I hear you. But like I said those are consumer goods. The High-End High-Tech industries are doing better than other manufacturing sectors. Again we dont see those products. Like Nike etc etc etc.

Even at 21% we are still way down from the glory days of over 30% from just a few decades back but we are hardly out of the running for example these two little tid bits.

It seems we can buy American and it does affect our over seas suppliers.
U.S. Economy: Goods Orders Unexpectedly Jump as Recession Eases

June 24 (Bloomberg) -- Orders for U.S. durable goods unexpectedly jumped in May, a sign companies are gaining confidence the recession is easing.

The 1.8 percent rise in bookings for items meant to last several years matched the previous month’s increase, the Commerce Department said today in Washington. Another report showed sales of new houses unexpectedly dropped last month, indicating foreclosures made existing homes more attractive.

Meanwhile over in Japan.



Japan exports fall 40.9 percent in May

Associated Press
7:10 AM PDT, June 24, 2009

TOKYO -- The slump in Japan's exports showed little sign of relenting in May, with auto exports to the U.S. down more than half, adding to doubts about a quick recovery from the global recession.

Exports from the world's second-largest economy plunged 40.9 percent from a year earlier, accelerating from a 39.1 percent fall in April, the government said today, as consumers overseas bought fewer of the country's cars, electronics and other mainstay exports.

[edit on 24-6-2009 by SLAYER69]

reply to post by SLAYER69


I also meant to say Brittan when I said US companies are still based in the States. oops.

Here are a few reasons people are leaving. I found out most companies are moving to Ireland.

I don’t like to see this happen either. I think Gordon Brown must go!

Waves of Emigrants Leaving Britain

Recently, the UK newspapers have been full of pieces about emigration from the country. This is in sharp contrast to the normal focus on immigration to the UK. Emigration is at its highest level since right after World War II. To quote a recent Telegraph piece on the subject:
We now learn from the Organization for Economic Cooperation and Development (OECD) that we lead the world in exporting talent, with a higher proportion of highly skilled professionals emigrating from this country than from any other (except Mexico). The OECD estimates that 1.1 million highly skilled Britons — more than one in ten of the total — are now living overseas. That 1960s phenomenon, the Brain Drain, is back. Companies have gotten the message too. Several large companies have announced headquarters moves to Ireland. This situation is eloquently described by Guido Fox as “taxodus.” He even has a clever logo for it. As Gordon Brown desperately seeks more sources of income in the faltering economy,

pajamasmedia.com...






Britain 'sleepwalking into pensions crisis'

Our research shows fewer than one in twenty employers expect their defined benefit pension scheme to be open to new members in five years’ time, said Marc Hommel, partner at PwC. ‘Further, only about one in five are saying they will not freeze future benefit accrual for existing members, potentially leaving UK businesses with a legacy of ‘zombie’ pension funds.’
‘Pensions apartheid is upon us, with a growing gap between the relative generosity of the public sector and the intention of more than a third of private sector employers to provide the bare minimum under the 2012 auto-enrolment pension requirements.’ Private sector final salary schemes are dead, apart from provision from a few increasingly rare employers

www.citywire.co.uk...

96% of U.K. employers weigh DB plan changes, survey says

U.K. defined benefit plans are unsustainable in their current form because of associated risks and increasing costs, leading 96% of the employers to consider making some changes to their pension plans, according to a PricewaterhouseCoopers survey.

www.pionline.com...




[edit on 24-6-2009 by wonderworld]

Originally posted by dominicus
It's going to come down to owning a few acres, sustainable living in a small cottage/cob/cabin with a garden and a few chickens. Those people will be the one's who survive all this crap.

Yes it will be the farmers that do well in times of economic oppression. We will be less dependent on governmement aid when SHTF!

Originally posted by wonderworld
reply to post by SLAYER69

 

I also meant to say Brittan when I said US companies are still based in the States. oops.

Here are a few reasons people are leaving. I found out most companies are moving to Ireland.

OH!
Don't get me started on "Job Losses " to Ireland or India.
I lost a damned good career to a company buy out then break up with both those countries splitting my job field in the Tech industry!

I know that story all too well.