Brexit impact on UK employment sector?

It is clear now that UK to leave the EU in march 2019, in one of the most controversial and talked about political moves in history. But, despite the exit talks dominating the headlines, are we really any closer to understanding the impact that Brexit will have on our workforce?

Latest official data shows that net EU migration has fallen by 95% in the last year, resulting in fewer EU workers to fill essential roles, and this reduction has been reflected in numerous reports across different sectors and industries.

According to the annual summer survey carried out by the Chartered Institute of Personnel and Development (CIPD), the median number of applicants per role has reduced dramatically since Summer 2017 in all skill levels; with low skilled dropping from 24 down to 20, medium skilled from 19 to 10 and high skilled from 8 to 6. In the same survey, employers with vacancies are reporting that roles are harder to fill, with 10% more employers saying that they find it difficult to find the right applicant this year than in 2017. The CIPD recommends that firms should invest in skill development and better line management to raise workplace productivity in the wake of lower labour supply.

But while low labour supply might signal a pay boost for lower paid roles, it may also create a shortage of workers for industries. Transport, IT and construction have long been reliant on non-UK workers to fill vacancies, and the lack of applicants for roles in the health industry has already prompted the NHS to warn that a deficiency of EU workers could put patient safety at risk.

Businesses should focus on sourcing and retaining high quality talent, by continuing to carry out comprehensive pre-employment screening and right to work checks, to ensure that that all workers are not only qualified and experienced for the role, but also comply with the existing legislation around non-UK workers. The £20,000 fine per illegal worker currently remains in place.

A spokesman for the UK government said “After we leave the EU, the UK will continue to be the open country it has always been. We will have in place an immigration system that delivers control over who comes to the UK, but that welcomes the brightest and best who want to work hard and contribute.”

While speculation around the true cost of Brexit is rife, we recommend that businesses stay compliant and diligent in all areas of employment screening practices, and act on legislative changes as they happen, to mitigate risk, remain compliant and prevent problems further down the line.

British businesses have been warned to brace for a severe workforce crisis triggered by Brexit, with the number of workers entering employment expected to fall behind the rate of population growth for the first time in half a century.

According to employment consultant Mercer, the size of the British workforce is expected to rise by just 820,000 by 2025, marking a dramatic slowdown from the previous decade, when almost 2 million people entered employment.

The increase would cut the workforce growth rate from 9% in the 10 years to 2015 to 2.4% six years after Britain leaves the EU at the end of March 2019, underscoring businesses’ fears over a potential labour shortage.

The slowdown is also forecast to have worrying consequences for the government at a time when more workers are needed to enter the health and social care professions to care for Britain’s ageing population. Mercer estimates there will be an additional 2 million people aged 65 and over by 2025.

The consultancy firm said as many as 710,000 people are likely to be required by the health and social care sector over the coming few years, leaving just 110,000 available for the rest of the economy.

Gary Simmons, a partner at Mercer, said: “There are going to be big winners and losers in the battle for workers. If businesses don’t take action now they will face significant costs and be left in a poor position.”

Net migration numbers to Britain have been falling since the EU referendum, while there are fears among business leaders that tighter controls on immigration could compound growing labour shortages.

Sectors such as hospitality, retail and agriculture have voiced particular concerns over their access to migrant labour, while universities, pharmaceutical companies and banks are worried about attracting international talent.

Jobs vacancies are at the highest levels since comparable records began in 2001, according to the Office for National Statistics, with 816,000 recorded in the three months to February. The Bank of England’s network of regional agents said on Wednesday that recruitment difficulties were the primary concern raised by the businesses they spoke to in the first quarter of the year.

will brexit have more negitive effects on UK economy,only time will tell.

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