World

Brexit could bring 100,000 jobs to Frankfurt, says study

FRANKFURT: The expected mass exodus of United Kingdom-based bankers because of Brexit could bring up to 100,000 new jobs to Germany's Frankfurt region over the next four years, according to a study published yesterday.

The report, commissioned by the Frankfurt Main Finance lobby group, comes as Germany's financial hub takes an early lead in the battle for the spoils of Brexit.

The study said 10,000 new banking jobs are expected to flood into Frankfurt as a result of Britain's decision to leave the European Union (EU), and this would have a multiplying effect on other sectors.

"New bank employees will increase demand for housing, infrastructure and transportation, education, healthcare, consumer goods, food and so on," the researchers said.

Working from the expectation that the initial "Brexit shock" will bring 10,000 banking jobs, and assuming economic growth rates remain stable, the study calculated that at least another 21,300 non-banking jobs would be created in Frankfurt alone.

Under its most "optimistic scenario", Frankfurt and the surrounding Rhein-Main region, which includes towns as far as 80km further south, could see a boom of nearly 88,000 additional jobs.

"As the Brexit effect is permanent, the non-financial employment effect will also be long-term," the authors added. - AFP

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