Neither the launch of Facebook’s Libra cryptocurrency nor the rapid appreciation of Bitcoin - which has more than quadrupled in value in 2019 - has so far reversed the trend.

Just two years ago, jobseekers’ interest in Blockchain - the technology which underpins cryptocurrencies like Bitcoin and Libra - surged. In 2017 Indeed recorded a tenfold increase in the number of candidates searching for Blockchain jobs, coinciding with a 2,100% spike in the value of Bitcoin, which peaked at $20,000 in December that year. 

Candidates’ interest in jobs mentioning ‘Blockchain’, ‘Bitcoin’ and ‘Cryptocurrencies’ surged in the first half of 2018, before tailing off sharply in the latter part of the year. Searches for these jobs have fallen further in 2019, with the monthly average this year sliding by 44% on its 2018 level. 

The number of cryptocurrency job postings has also collapsed in 2019, with the June figure down 72% on the record high recorded in March 2018.

Interest in Blockchain, Bitcoin and cryptocurrencies plummets.

The falling interest coincides with extreme volatility in the value of cryptocurrencies. Bitcoin prices fell by nearly 80% in 2018, and though the best known cryptocurrency has rebounded in 2019 - surging past $13,000 at the end of last month - jobseeker interest in the crypto sector has not yet matched that resurgence. 

However, Facebook’s entry into the cryptocurrency market could inject new credibility and mainstream acceptance of the technology, and Indeed’s data reveals that a string of well-known tech and financial services firms continue to advertise Blockchain jobs.

The global banking giant JPMorgan Chase, one of the top 10 companies posting cryptocurrency jobs on Indeed, created the first US bank-backed cryptocurrency last year when it launched JPM Coin. Meanwhile, earlier this year, tech firm IBM created a global payments network to support transactions involving foreign currencies and cryptocurrencies.

Bill Richards, UK Managing Director at global job site Indeed, commented: “The mercurial rise - and then fall - in the value of Bitcoin sparked headlines and jobseeker responses in roughly equal measure.

“But while the rapid rise in value of Bitcoin so far this year has attracted investors, jobseekers have been more wary. 

“Behind the froth of Bitcoin, the true potential of Blockchain is still being revealed, and it’s striking how many companies, including tech and banking heavyweights, are building teams of people with skills in this area.

“Facebook’s launch of Libra is set to extend the reach and acceptance of cryptocurrencies and could power a second boom in Blockchain jobs, but so far this is anything but a foregone conclusion.” 

(Source: Indeed)

The new Government has to prioritise economic renewal, encourage investment and provide more support to businesses looking to grow according to Michael Izza, ICAEW’s chief executive. In anticipation of the Queen’s Speech later this week, he is urging ministers to take steps now to head off a looming threat to economic growth from weakening business investment, rising inflation and slower wage growth as revealed in ICAEW’s latest forecast.

“We cannot underestimate the impact that the current outlook for the UK has on business confidence,” said Michael Izza. “The vote for Brexit, the outcome of the General Election and looking ahead, the negotiations on leaving the EU all help build uncertainty and create a hiatus in making long term changes to our tax and regulatory systems.

“In the current climate, businesses tend to see the potential risks rather than the rewards of investing. I would like to see the new Government put business and the economy at the top of its agenda, doing more to create a climate of optimism and certainty which will help build confidence. It also needs to send a clear signal to the rest of the world that Britain continues to be an good place to do business, to invest and to trade. Not to do so could put at risk the economic progress we have made over the last two parliaments.”

ICAEW has also published its Economic Forecast for Q2 2017 which has revealed:

• Real income losses for households. Weaker growth in demand for workers, along with upward pressure on non-wage labour costs faced by firms, suggest that wage growth will remain around 2% in 2017. With the Bank of England expecting inflation to remain close to 3% for the year, this will lead to a squeeze in household incomes through the second half of 2017.
• Weaker business investment in 2017, but potential for faster rebound. Investment recovered a little in Q1 2017, but ICAEW continues to forecast a modest fall for the year. However, firms’ financial positions and profit margins remain good, and borrowing costs will remain low for quite some time. But given the uncertain domestic political outlook and difficult Brexit negotiations to come it seems likely firms will continue to exercise restraint in their capital spending.
• Labour market to remain tight. Recent labour market data suggests the degree of spare capacity remains historically low, while BCM evidence shows firms expect to continue to create jobs in the year ahead. At just 0.7% for the year, the rate of private sector employment growth will be the slowest since 2012. Given the continued growth in working-age population, this rate of job creation will be just enough to stabilise the unemployment rate close to the current level.
• Q1 slowdown could prove temporary. GDP growth slowed sharply from Q4 2016 to Q1 2017, with the 0.2% reported in the first three months of this year - the slowest increase since 2014. We expect GDP growth to rebound a little in the remainder of 2017, with exports playing a greater role in driving growth than in previous years. We have nudged up our forecast for GDP growth in 2017, from 1.6% in our last report to 1.7%.
• Long-term fiscal risks still not being tackled. The last fiscal year delivered the smallest budget deficit in cash and GDP terms for almost ten years. But early evidence for 2017-18 suggests that the slowing economy is hurting the UK’s fiscal position.  The election campaign has demonstrated that no consensus exists on how to tackle longer-term risks to the public finances.

Michael Izza adds: “The voice of business needs more prominence within Government’s plans to rejuvenate the economy. The political parties, who largely ignored business in their manifestos, must now engage with the business community if UK companies are to thrive in a post-Brexit landscape.”

(Source: ICAEW)