The UK has fallen three places to number 12 in an annual global talent ranking covering 132 countries.
The Global Talent Competitiveness Index measures the ability to attract, retain, train, and educate skilled workers according to an annual ranking by the Adecco Group, international business school INSEAD, and Google (GOOG).
The drop is mainly due to the country’s uninspiring performances in its ability to attract and retain talent with lack of political stability and poor tolerance of minorities to blame.
This is reflected in its low score in the area of “Internal Openness” which would be improved through greater tolerance of minorities, a category for which the UK fell to 78th place this year from from 54th last year.
The report also draws attention to the area of “Vocational and Technical Skills,” and suggests that the UK could do more to improve secondary education by making it more relevant for the labour market.
However, the UK ranked among the top countries in growing talent, coming in at number five, and in having a strong pool of “Global Knowledge Skills,” in which it came third.
Switzerland takes the top spot, followed by the US, Singapore, Sweden, and Denmark.
Some individual cities are also cementing their role as talent hubs, with London’s efforts to attract and retain top talent paying off. The capital leapt into the number two spot from number 14 last year.
The report puts this down to London’s ability to be flexible and open to new trends and patterns, and provide capacity for future readiness in developing areas such as artificial intelligence or advanced technologies, such as fintech and medtech.
Three other British cities also feature in the ranking — Edinburgh (45th), Birmingham (76th), and Cardiff (77th).
New York comes in as the top city for global talent. Following London are Singapore, San Francisco, and Boston.
Global Talent Competitiveness Index top 20 countries:
Global Talent Competitiveness Index top 10 cities: