Flexible workspaces are set to contribute £12 billion to local economies in the UK over the next 10 years, according to the first socio-economic study of second-city and suburban workspaces. 

The study predicts that by 2029, there could be a total of just over 246,000 people working at flexible workspaces across the UK, providing a further 156,000 jobs for local residents.

The analysis, conducted by independent economists on behalf of Regus, reveals that as Brexit uncertainty and increased automation continues to impact the economic landscape, the establishment of a flexible workspace in a smaller city, town or suburban location could be a welcome lifeline for local economies, with four main benefits identified:

Alternate Text 1. Job creation 
Alternate Text  2. Value creation
Alternate Text  3. Time saving
Alternate Text  4. Carbon savings

Businesses are increasingly basing employees outside of major metropolitan hubs in ‘flex spaces’, driven by cost-efficiencies, an ever-improving transport infrastructure and the rise of flexible working.

With HS2 – the high-speed railway linking London and the north of England – under review, this analysis has identified the growing importance of suburban business hubs to the UK economy.

On average, 231 jobs are created in areas that have a co-working space, currently pumping more than £15 million into the local economy as a result.

The study predicts that by 2029, there could be a total of just over 246,000 people working at flexible workspaces across the UK, providing a further 156,000 jobs for local residents.

Closing Skills Gaps

Peter Cheese, CIPD chief executive and co-chair of the Flexible Working Task Force, said:

“Providing more flexible opportunities for how, when and where people work should be part of every organisation’s strategy to attract and retain the talent and skills they need. 

“Employers need to consider, and address, the barriers holding them back from adopting flexible working practices more widely – be it entrenched organisational cultures or making sure line managers are trained to support and manage flexible workers.

“By encouraging many more jobs to be advertised as flexible as the default option, the task force is challenging outdated attitudes to flexible working that still prevail in some organisations and laying down a marker for other employers to follow.”

Aside from the direct financial impact, local office space has been found to benefit workers and local regions in other, societal ways.

This includes reducing the time spent commuting, with access to a local office space expected to save 411,000 days per annum by 2029.

Local office space has a further advantage, by providing working opportunities for those who might otherwise be unable to travel long distances to an office. This could include people living with disabilities, as well as those with caring responsibilities.

Advertisement

As the labour markets tighten, local flexible workspaces could open new routes to top talent that will help close Skills Gaps.

Economic impact

As well as direct job creation, flexible workspaces benefit the local area through an uplift in Gross Value Added (GVA), the measure of the value of goods and services produced in an area. The study found that an average coworking centre in the UK will generate £20 billion GVA each year by 2029, of which over £12 billion will go directly into the local economy.

This is in part explained by “the sandwich economy”, but also created by improved career and earning prospects for residents and companies within the centre doing more business locally.

Steve Lucas of Development Economics, and report author, says:

“This study reveals a shift in jobs and capital-growth moving outside of city centres, where it has been focused for the last few decades, into suburban locations. This can benefit businesses and people, from improving productivity and innovation, to reducing commuting time, which leads to improved health and wellbeing.”

Mark Dixon, CEO for Regus’ parent company IWG, says:

“When people commute into major cities, their wallets commute with them. What this study shows is that providing more opportunities for people to work closer to home can have a tremendous effect, not just on them, but on their local area too. Businesses also recognise the benefits and we are seeing increasing demand from companies of all sizes for flexible space in smaller cities and towns. Larger businesses are opting for a ‘hub and spoke’ real estate model. At the same time, smaller enterprises want to cluster and collaborate, and so choose flexible workspaces to be near other businesses.

“We already have hundreds of centres in these types of locations, some of which have populations as little as ten thousand people and we plan to open many more in the near future as this trend continues. Our vision is that, in the near future, there will be a professional workspace available on every corner.”

The Regus study analysed the socio-economic impact of flexible working in 19 countries:

  1. Australia
  2. Austria
  3. Belgium
  4. Brazil
  5. Canada
  6. China
  7. France
  8. Germany
  9. India
  10. Italy
  11. Japan
  12. Netherlands
  13. New Zealand
  14. the Philippines
  15. South Africa
  16. Spain
  17. Switzerland
  18. the United Kingdom, and
  19. the United States

 

You may also be interested in these articles:

Register, Login or Login with your Social Media account:


Advertisers

Newsroom Activity

FE News: The Future of Education News Channel shared a video in channel. 2 hours 42 minutes ago

#WomenEd England Launch 18th July 2020

Join us for our first @WomenEdEngland event, where we hear from new voices in our community who have agreed to be #10% Braver and share their...

FE News: The Future of Education News Channel had a status update on Twitter 2 hours 43 minutes ago

RT @FENews: 21st Century Learning World Readiness with Joseph Olan, Educational Presenter/Author: As communities and educators around the w…
View Original Tweet

Fiona Chalk has a new avatar. 9 hours 6 minutes ago

Latest Education News

Further Education News

The FE News Channel gives you the latest education news and updates on emerging education strategies and the #FutureofEducation and the #FutureofWork.

Providing trustworthy and positive Further Education news and views since 2003, we are a digital news channel with a mixture of written word articles, podcasts and videos. Our specialisation is providing you with a mixture of the latest education news, our stance is always positive, sector building and sharing different perspectives and views from thought leaders, to provide you with a think tank of new ideas and solutions to bring the education sector together and come up with new innovative solutions and ideas.

FE News publish exclusive peer to peer thought leadership articles from our feature writers, as well as user generated content across our network of over 3000 Newsrooms, offering multiple sources of the latest education news across the Education and Employability sectors.

FE News also broadcast live events, podcasts with leading experts and thought leaders, webinars, video interviews and Further Education news bulletins so you receive the latest developments in Skills News and across the Apprenticeship, Further Education and Employability sectors.

Every week FE News has over 200 articles and new pieces of content per week. We are a news channel providing the latest Further Education News, giving insight from multiple sources on the latest education policy developments, latest strategies, through to our thought leaders who provide blue sky thinking strategy, best practice and innovation to help look into the future developments for education and the future of work.

In May 2020, FE News had over 120,000 unique visitors according to Google Analytics and over 200 new pieces of news content every week, from thought leadership articles, to the latest education news via written word, podcasts, video to press releases from across the sector.

We thought it would be helpful to explain how we tier our latest education news content and how you can get involved and understand how you can read the latest daily Further Education news and how we structure our FE Week of content:

Main Features

Our main features are exclusive and are thought leadership articles and blue sky thinking with experts writing peer to peer news articles about the future of education and the future of work. The focus is solution led thought leadership, sharing best practice, innovation and emerging strategy. These are often articles about the future of education and the future of work, they often then create future education news articles. We limit our main features to a maximum of 20 per week, as they are often about new concepts and new thought processes. Our main features are also exclusive articles responding to the latest education news, maybe an insight from an expert into a policy announcement or response to an education think tank report or a white paper.

FE Voices

FE Voices was originally set up as a section on FE News to give a voice back to the sector. As we now have over 3,000 newsrooms and contributors, FE Voices are usually thought leadership articles, they don’t necessarily have to be exclusive, but usually are, they are slightly shorter than Main Features. FE Voices can include more mixed media with the Further Education News articles, such as embedded podcasts and videos. Our sector response articles asking for different comments and opinions to education policy announcements or responding to a report of white paper are usually held in the FE Voices section. If we have a live podcast in an evening or a radio show such as SkillsWorldLive radio show, the next morning we place the FE podcast recording in the FE Voices section.

Sector News

In sector news we have a blend of content from Press Releases, education resources, reports, education research, white papers from a range of contributors. We have a lot of positive education news articles from colleges, awarding organisations and Apprenticeship Training Providers, press releases from DfE to Think Tanks giving the overview of a report, through to helpful resources to help you with delivering education strategies to your learners and students.

Podcasts

We have a range of education podcasts on FE News, from hour long full production FE podcasts such as SkillsWorldLive in conjunction with the Federation of Awarding Bodies, to weekly podcasts from experts and thought leaders, providing advice and guidance to leaders. FE News also record podcasts at conferences and events, giving you one on one podcasts with education and skills experts on the latest strategies and developments.

We have over 150 education podcasts on FE News, ranging from EdTech podcasts with experts discussing Education 4.0 and how technology is complimenting and transforming education, to podcasts with experts discussing education research, the future of work, how to develop skills systems for jobs of the future to interviews with the Apprenticeship and Skills Minister.

We record our own exclusive FE News podcasts, work in conjunction with sector partners such as FAB to create weekly podcasts and daily education podcasts, through to working with sector leaders creating exclusive education news podcasts.

Education Video Interviews

FE News have over 700 FE Video interviews and have been recording education video interviews with experts for over 12 years. These are usually vox pop video interviews with experts across education and work, discussing blue sky thinking ideas and views about the future of education and work.

Events

FE News has a free events calendar to check out the latest conferences, webinars and events to keep up to date with the latest education news and strategies.

FE Newsrooms

The FE Newsroom is home to your content if you are a FE News contributor. It also help the audience develop relationship with either you as an individual or your organisation as they can click through and ‘box set’ consume all of your previous thought leadership articles, latest education news press releases, videos and education podcasts.

Do you want to contribute, share your ideas or vision or share a press release?

If you want to write a thought leadership article, share your ideas and vision for the future of education or the future of work, write a press release sharing the latest education news or contribute to a podcast, first of all you need to set up a FE Newsroom login (which is free): once the team have approved your newsroom (all content, newsrooms are all approved by a member of the FE News team- no robots are used in this process!), you can then start adding content (again all articles, videos and podcasts are all approved by the FE News editorial team before they go live on FE News). As all newsrooms and content are approved by the FE News team, there will be a slight delay on the team being able to review and approve content.

 RSS IconRSS Feed Selection Page