Brexit has been right at the front of everyone’s mind for a number of months since the results of the UK referendum were announced.
There are many ways in which the decision for the UK to leave the EU is likely to have an impact on the country as a whole in the near and distant future. There are various views, some positive and some negative, of this impact, and one issue that has been discussed recently is the impact on the UK jobs market – more specifically relating to job creation.
One of the main issues that comes with Brexit is uncertainty – thanks to the fact that no country has ever left the EU before, nobody really knows what will happen, and what the short and long term effects are actually going to be. For this reason, a survey conducted soon after the referendum has brought to light some pessimistic feelings about the future of the UK job market.
When companies were asked whether they had plans to increase their UK workforce, those in the private sector seemed pessimistic, and stated that in general they were unlikely to increase their workforce in the near future. This is partly thought to be due to the fact that any investments that involve spending money on hiring staff is likely to slow down until the full effects of Brexit become clear – which may not be for a number of years.
There are many companies, including British Airways, who have released statements including profit warnings since the outcome of the referendum was announced. As a result of this, any kind of spending is likely to be reduced, and this certainly includes the hiring of new staff, at least for the foreseeable future.
Although the actual effects of Brexit are yet to be discovered, there is a chance that the feared effects could have a negative impact on both the economy as a whole and on jobs creation before the UK has even officially left the Union. This raises many questions for economists, and means that businesses need to have an incredibly sharp focus when it comes to thinking about both their short term and long term profits.
It certainly seems that Brexit will be a game changer – but it remains to be seen exactly how this will play out, and who the winners and the losers will be once the dust has settled.