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London is new ‘soft power’ capital

According to Deloitte LLP, London is now the ‘soft power’ capital of the world, generating more high-skilled jobs than any other major city.

Since 2013, London has created 235,000 new high-skilled jobs, and now employs business leaders of 95 nationalities [1].

Angus Knowles-Cutler, Senior Partner at Deloitte, said: “London is a global city, arguably the world’s foremost business hub” [1].

The city’s strength lies in that many people have travelled to the UK for education, Deloitte said. London benefits from having the world’s third best business school – the London Business School – and top-ten ranked university, Imperial College [2].

But the future of the capital isn’t without uncertainties; automation threatens to reduce the number of low-paid jobs, and a housing shortage potentially looms, Deloitte said [1].

There are 1.71 million high-skill jobs in the London economy, compared with 1.16 million in New York, which has declined a little in recent years. Paris has 0.63 million high-skill jobs, followed by Tokyo, Hong Kong, Singapore, and Sydney [2].

Deloitte also looked at the connections between executives; they found that London is the most global of the cities, with not only the most diverse group of people working there, but also “exporting” executives to a wider number of other locations. This was the “soft power” characteristic of the study [2].

Deloitte also notes the burden on high-tech firms who are more likely to need to bring in talent from overseas, as well as the impending EU referendum.

Chief Executive of Deloitte, David Sproul, said: “With a continuing skills crunch, global cities will depend increasingly on cross-border flows to sustain growth and employment in the future global economy. Whatever the outcome of this June’s referendum, policymakers must be alive to protecting the UK’s ability to attract the high-skilled, highly networked leaders our businesses need” [3].

Click here to read the report in full.

[1] Bloomberg. ‘London outpaces New York as ‘soft power’ capital, Deloitte says’. bloomberg.com
[2] The Independent. ‘London is the most successful city in the world. Let it grow’. independent.co.uk
[3] Deloitte. ‘London is the soft power and high skills capital of the world, finds Deloitte research’. www2.deloitte.com