Many believe the majority of industries are going to suffer, whilst others believe very little is going to change. The automotive and financial services industries have come under the microscope for possible Brexit implications and could see a loss of nearly one million jobs between them.
These implications will be most felt in the city of London due to its huge financial services market. If the UK was prohibited from free movement for financial service passports, many companies may choose to relocate their operations to countries that remain within the EU. These moves could affect nearly 360,000 staff, who would either be offered jobs abroad or made redundant.
Some of the world’s largest multinationals, including Airbus and JP Morgan, have been quoted as saying that they may look to move their UK operations elsewhere. This would mean even more UK staff relocating and could leave skill shortages for the UK in the future, especially within engineering. This industry has already seen a decline in skilled staff.
Many within the automotive market could face redundancies as organisations such as Ford threaten to do whatever it takes to remain profitable and competitive. This could lead to staff shortages in the future.
Even before any decisions regarding leaving the EU have been agreed, many companies – such as BA – are issuing profit warnings due to the volatility in the market. This could result in recruitment freezes across whole industries.
The collapse of the pound against the dollar could see a rise in importing costs, which would have a knock-on effect on productivity costs and result in less pay rises and lower base salaries for new positions.
Due to the instability within all markets, reduced economic activity and a lack of new investment, unemployment rates are set to rise in the short term as firms suspend recruitment, make redundancies where necessary, and people in jobs stay put for longer whilst the dust settles.
Although there is much gossip, prediction and hearsay about what will happen to UK jobs following Brexit, little will be known until our leave agreement with the EU is confirmed. If we are able to remain part of the full single market, we may see no change at all and UK jobs will remain safe and secure.
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