British workers turn to overseas jobs market as UK wages fail to keep up with inflation

An increasing number of British workers are turning their attention towards the overseas jobs market.

According to the latest research from Lloyds TSB International, some 30 per cent of UK expats moved abroad for a career opportunity, up from 27 per cent since February 2012 in a sign that more and more people are starting to recognise the benefits of overseas work.

One reason for the shift may be the challenging UK economic environment. Over the past 18 months, the UK economy has been broadly flat. The level of unemployment has stubbornly remained at about 2.5 million since mid-2009 and, while inflation remained steady at 2.7 per cent for the fourth consecutive month in January, pay has struggled to keep pace. Average earnings growth was 1.5 per cent in November 2012.

In stark contrast, the research from Lloyds TSB International revealed that more than two thirds of respondents (68 per cent) who moved abroad as part of a work assignment said that they now earn more in their current country of residence than they did in the UK. This is up from February 2012, when 54 per cent of respondents stated that they were earning more. In fact, well over three quarters (79 per cent) of respondents who moved abroad for a career opportunity said that they now feel better off financially, compared with just 67 per cent who made the same claim in February 2012.

While an increasing number of people who moved abroad for a career opportunity were attracted by a higher salary (44 per cent; compared with 35 per cent 12 months ago), the research reveals that lifestyle factors are more decisive in encouraging people to move overseas. The opportunity to gain different life experiences and the chance to give their family a higher quality of life are jointly the most popular reasons to move abroad with 48 per cent of respondents selecting each option.

English as the main language is clearly an important factor influencing the movement of the global workforce, with the majority of UK expats moving abroad for work having relocated to the USA (17 per cent), followed by Canada (16 per cent) and Australia (12 per cent). Of those who have moved abroad for a work assignment, the majority are based in the technology field (10 per cent), closely followed by those working in manufacturing (8 per cent) and financial services (8 per cent).

Surprisingly though, the greatest concentration of technology jobs are based in Germany, while for manufacturing the greatest concentration of roles is in South Africa. Britons moving to the Channel Islands and Isle of Man for their career are more likely to work in financial services than any other industry.

‘In today's difficult employment market there is a trend for people to relocate to different countries for work. The financial services and manufacturing industries, both of which have been impacted by a challenging economic climate, stand out in terms of the number of people moving abroad for work. However, employers seem to be aware of the challenges and it's encouraging to see the extent to which they are prepared to help facilitate the move. Significantly, 55 per cent of our respondents were offered a moving allowance, with a further 50 per cent offered help with housing costs and 43 per cent flights home,' said Richard Musty, Lloyds TSB International Private Bank director.

Despite the large numbers of employers who were prepared to offer additional incentives when transferring members of their workforce overseas, the research revealed some areas where expats felt they could have been offered further support. Less than one third (31 per cent) of those who moved abroad for a career opportunity were offered transition services relating to financial advice, with a further 47 per cent saying that they would have benefited from more transition services in their move. Additionally, 37 per cent of respondents said that they would have benefited from more financial advice regarding their investments, while 33 per cent would have liked more advice on pensions and 29 per cent would have liked more advice on tax issues when they moved abroad.

‘While the global employment market remains in a state of flux it's essential that when people are moving specifically for a work assignment, they are offered the necessary levels of advice and support to ensure a smooth transition. For example, providing guidance around finances before people emigrate will ensure they have flexibility and access to their money internationally,' said Richard.

‘It is more important than ever that people are equipped with the right tools and information to maximise the benefits of a higher salary and greater financial stability which come with working overseas and, as more and more people look at career opportunities abroad, we need to ensure that more is being done to close the gap.'