Brexit Effect on the Labor Market
Big Ben, the symbol of the United Kingdom! If Big Ben rang every time someone leaves London, then it wouldn’t stop ringing at all. A recent study published shows that in 2020, nearly 700,000 inhabitants of London have left the city. Many of them also left the country. Right now, the current statistic is that about 1.3 million people left the United Kingdom in the wake of Brexit. It is not clear to me how many of these folks leave London and the UK because of Brexit? It is also possible that they could have lost their job because of the coronavirus, or maybe they just feel like other opportunities outside of the UK are more relevant for them.
The downside now is that the labor market in London and the United Kingdom is very complicated.Work is tight and it’s very difficult for employers to find qualified labor. A discussion point I picked up the other day is that there is a serious discussion to reduce the rights of the workers in light of the shortage of workers. I feel like it should be the other way around however. With a shortage of workers, their negotiation power should go up to claim some more benefits. Whether it be Brexit, COVID-19, or whatever else it is, the situation in London and the UK in general is complicated. For you as business people, I’m sure a big question for you is if London is a good place to invest or operate your business. If you see a shortage of labor and a labor market that doesn’t give you enough qualified choices, I’d say for now to stay out of the United Kingdom.
#334, January 2021, London, UK, Brexit, employment, labor market.