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What Is the Brexit Impact on The UK Labour Market?

labour market insights
Written by fatraven

Seeking a job post-Brexit has given a lot of us sleepless nights. The very question of the impact of Brexit on the UK job market is still unclear to many. Just when experts were beginning to study the effect of Brexit on the UK’s job stability, the coronavirus pandemic hit the world so hard that it left us in a grave stage of job disappearance and instability.

 We at fatraven have decided to clear the fog around this burning topic by explaining the effect of Brexit on the UK job market and other labour market insights. Read on to know more.

Brexit Impact on The UK Labour Market

Brexit effect: Labour market insights before COVID-19

 Upon analysing the Labour market statistics back then, it is to be noted that in mid of 2019, the rate of employment in the country hit a record high of 76.1%. By September 2019, the unemployment rate was recorded to be the lowest since 1974. But then when the Brexit date moved to October 31, 2019, numerous businesses walked off with their opportunities and left the UK. For instance, the Barclays Bank moved to Dublin in 2019 taking £166 billion of holdings and numerous job prospects along with them to Dublin from the UK.

Rate of unemployment

As of 2019, the unemployment rate was reported to be 3.8%. But as per the statistics declared by ONS, the rate of unemployment is at 5%. Even during the global financial crisis in 2008, the employment rate was far higher than it is now due to Brexit and the pandemic scenario. ONS labour market insights also stated that the hiring intention had dropped to 2% which is the lowest after 2012.

Hard-hit sectors

Even before COVID-19, the tourism and automotive industry were hit hard. With the pandemic, things became again in bad shape. Manufacturing was another sector that lost almost half a million jobs. In December 2019, a large number of EU nationals left the UK due to the scarcity of jobs in retail, hospitality and leisure as a result of Brexit topped by the Coronavirus pandemic.

Demand in increasing British talent

With the increasing number of skilled workforce moving to the EU, the UK government and businesses are focusing more on enhancing the talent of the British nationals. Brexit has truly created a skill gap that is forcing the UK to spend time and money in providing the economy with the best and right talent.

Brexit impact on the job of EU citizens

 With Brexit, the UK will look less intriguing for the EU citizens. Firstly, immigrants in the UK from the EU will have to apply for European Temporary Leave to Remain (ETLTR). This is a system that accepts immigrants based on their skills that the UK as a country needs. With such strict immigration criteria, EU workers are certainly going to have a rough phase. They will not only find it hard to get a job but also have to pay a pricey fee to work in the UK.

Brexit impact on the job of UK citizens

With fewer EU nationals willing or permitted to find employment in the UK, home citizens will have less competition. Another good news of UK nationals is that in the whole rage between businesses battling to attract the best talent to their company, employees can expect an increase in their wages. Certainly not a hearty balm for the British businesses.

 Take a look at the types of the hidden job market to seek better opportunities.

To Conclude

Brexit uncertainty has made the job sector look a bit bleak but on the brighter side, there’s hope and ample opportunities. Hope that our labour market insights after Brexit have helped you in understanding the scenario and plan well ahead.

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