Article: Brexit & its Impact on Jobs

#Jobs

Brexit & its Impact on Jobs

The UKs vote to leave the European Union will have a considerable impact in the job market dynamics, in Britain, Europe and India too.
Brexit & its Impact on Jobs

 

British voters have given their voice in in favor of Brexit. The details on how the UK will exit from the European Union are still unclear, however, the impact on the job dynamics in the UK, Europe and non-Europe economies like India is already a center of discussion.

The Number of jobs in the UK may come down: Business are going to look at the impact of Brexit decision and potentially re-structure their operations and move parts of their business to the continent. This could include job redundancies as well as a headcount reduction in the future. This is likely to affect jobs in the UK across the board: from plant workers in manufacturing set-ups to high-profile professionals in investment banking. A recent article in The Guardian mentions that the sectors that will be most affected will be the service sectors that trade with the EU, as well as financial services, tourism and car manufacturing. Additionally, it is likely that fewer companies looking for global expansion may come to the UK to set up new operations and offer jobs to UK nationals.

Effect on European Talent remains a question mark: As per FullFact, an independent UK agency, over 2 million nationals of other EU countries work in UK, that is about 7% of the working population. As per the Global Counsel report, tightening immigration from other EU countries could reduce competitiveness, particularly of London, and being economically costly for the UK. The report brings to notice that over years immigration has helped address skills shortages and the consequences of an aging population. It also states that evidence suggests that on average EU migrants make a net contribution to public finances so reducing immigration from EU nationals in the UK could have an impact on the British economy.

More opportunities for Indian talent? In terms of immigration opportunities for Indian talent, Nasscom predicts that Brexit could mean more job opportunities for high-skilled talent from India as UK will potentially be more open to high-skilled immigration from other non-EU countries, which India could benefit from. While the number of jobs may decrease overall, there is a consensus that high-skill jobs may need to be filled in from talent outside the UK.  That is where the opportunity for more Indian professionals may arise.

There is a lot of uncertainty still on how will British economy get affected, job creation, immigration policies, and lots more. It will take years for the full view on the actual consequences to become clear. But there will be a definite impact on the dynamics of job creation and mobility of talent.

Topics: #Jobs, Recruitment

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