Brexit, the withdrawal of the United Kingdom from the European Union, has been a hot topic since the referendum took place in 2016. As the UK officially left the EU on January 31st, 2020, there have been many discussions about the potential impact on various aspects of the country, including jobs. With the uncertainty surrounding Brexit, it is natural for people to be concerned about how it will affect their employment prospects. In this article, we will delve into the intricacies of Brexit and its potential effects on the UK job market.

What is the Overview and Progression of Brexit Jobs?

Before discussing the impact of Brexit on jobs, let’s take a quick look at what exactly Brexit is and how it has progressed over the years.

What is Brexit?

Brexit, short for “British exit,” refers to the United Kingdom leaving the European Union (EU). The EU is a political and economic union consisting of 27 member countries, including the UK. The UK joined the EU in 1973 under its former name, the European Economic Community (EEC). However, after several debates and negotiations, the UK held a referendum in 2016 to determine whether it should leave the EU or remain a member. The majority (52%) of the UK population voted to leave, and thus, Brexit was set in motion.

Progression of Brexit

The official process of leaving the EU began on March 29th, 2017, when the UK invoked Article 50 of the Lisbon Treaty, triggering a two-year period for negotiations between the UK and the EU. However, due to multiple extensions, the UK finally left the EU on January 31st, 2020. This date marked the end of the UK’s membership with the EU, but it also began an 11-month transition period during which the UK would continue to follow EU rules while negotiating new trade deals and agreements.

What Could Be the Potential Impact of Brexit on UK Jobs?

The UK job market has been a significant concern for many since the referendum results. With the country no longer being part of the EU, there are bound to be changes in the recruitment landscape and employment opportunities. In this section, we will discuss the potential impact of Brexit on the UK job market.

Impact on Recruitment and Employment Process

One of the main concerns about Brexit is that it could make the recruitment process more challenging for both employers and job seekers. The free movement of people within the EU allowed companies to hire from a large pool of skilled workers across Europe. However, with Brexit, the UK will have to develop its own immigration policy, which could lead to stricter controls and limitations on hiring non-UK citizens.

Moreover, the uncertainty surrounding Brexit has caused many businesses to delay their recruitment plans, resulting in a slower job market. This hesitation to invest in new hires could continue until the final trade deals and agreements are in place, making it difficult for job seekers to secure employment.

Changes in Skill Demands

As the UK makes its exit from the EU, there could be changes in the skills demanded by employers. For instance, if the UK faces barriers in hiring from the EU, there might be an increase in demand for British workers to fill the gaps. This could lead to a rise in salaries and better job opportunities for UK citizens. However, there might also be a shortage of skilled workers in certain industries, leading to difficulties in finding suitable candidates.

Furthermore, the skill demands for jobs in the EU might also change. As UK citizens will no longer have the same freedom to work in EU countries, employers in the EU might prefer to hire from within the EU itself, limiting the job opportunities for UK citizens.

Impact on Specific Industries

Brexit is expected to have varying impacts on different industries in the UK. Some industries might see a positive impact, while others could suffer from the changes. Let’s take a look at some of the industries that are likely to be affected by Brexit.

1. Financial Services: The financial services industry is one of the most significant contributors to the UK economy, and London is considered a global financial hub. However, with Brexit, there might be a shift in this industry as many financial firms may move their operations to other EU cities to maintain access to the EU market. This could lead to job losses in this sector, affecting both UK citizens and non-UK citizens working in the industry;
2. Healthcare: The healthcare sector in the UK heavily relies on workers from the EU, making up 17% of the workforce. With stricter immigration policies, recruiting skilled workers from the EU could become more challenging, leading to shortages in the healthcare industry. This could not only affect job opportunities for healthcare professionals but also impact the quality of healthcare in the UK;
3. Agriculture: The agriculture industry in the UK has been heavily dependent on EU grants and subsidies. After Brexit, these subsidies will no longer be available, which could result in higher production costs and lower profits. This could lead to job losses in the industry, particularly for seasonal migrant workers who make up a significant portion of the agricultural workforce.

Changes in Employment Rights and Protections

As part of the EU, the UK had to follow certain employment laws and regulations set by the EU. After Brexit, the UK government plans to review and potentially change some of these laws. This could lead to changes in employment rights and protections for workers. However, it is worth noting that the UK already has its own set of employment laws and regulations that might offer similar or even better protections for workers.

Moreover, as the UK starts negotiating new trade deals with other countries, there is a possibility of lowering certain standards in order to secure these deals. This could affect worker’s rights and protections in the long run.

What is the Current Status of Brexit Jobs in the UK Job Market?

As we have discussed, there are many potential impacts of Brexit on the UK job market. However, it is essential to note that these are all speculations, and the actual impact will depend on the final trade deals and agreements that are made between the UK and the EU. In this section, we will take a look at the current status of the UK job market in the aftermath of Brexit.

Unemployment Rates

One of the most significant indicators of the health of a job market is the unemployment rate. The good news is that the UK’s unemployment rate has been steadily declining since 2012, and it remains relatively low at 4%. Despite the uncertainty surrounding Brexit, the job market has remained stable, with no significant spikes in unemployment rates.

However, it is worth noting that certain industries, such as the financial services industry, have seen job losses due to Brexit. Moreover, with the COVID-19 pandemic, there has been a slight increase in unemployment rates, but it is difficult to determine how much of it is directly related to Brexit.

Recruitment Trends

The recruitment landscape has also seen some changes in recent years. According to data from the Office for National Statistics, there has been a decline in the number of EU nationals working in the UK, which could be attributed to Brexit. This could be an indication that employers are becoming more cautious about hiring non-UK citizens due to the uncertain future.

Additionally, there has been a slight decrease in EU citizens searching for jobs in the UK, while there has been a rise in non-EU citizens looking for job opportunities. This could mean that non-EU citizens are now seeing the UK as a more attractive place to work post-Brexit.

Impact on Salaries

One of the concerns about Brexit has been the potential decline in salaries. However, according to a study by Glassdoor, the average salary in the UK has seen a steady increase since 2017. Additionally, certain industries such as technology and finance have seen a rise in wages, indicating that there is still demand for skilled workers in these sectors.

However, it is essential to note that with the economic impacts of the COVID-19 pandemic, there could be changes in salary trends in the coming years, making it difficult to determine the exact effect Brexit has had on salaries.

How Can Individuals Prepare for the Impact of Brexit on Jobs?

As we have seen, the impact of Brexit on the UK job market remains uncertain at the moment. However, there are a few steps you can take to prepare yourself for any potential effects.

• Stay Informed: The best way to stay ahead of the game is to stay informed about the latest developments in Brexit negotiations and how they might affect your industry or job sector. Keep an eye on news updates, government announcements, and industry-specific information to get a better understanding of the potential changes heading your way;
• Diversify Your Skill Set: In times of uncertainty, having a diverse skill set can be beneficial. If your industry is likely to be affected by Brexit, consider upskilling or learning new skills that could make you more valuable to employers. This will not only make you more employable but also future-proof your career;
• Consider Relocating: If you are currently working in the UK but are concerned about the impact of Brexit on your job, you might want to consider relocating to another EU country. This could give you access to the EU job market and potentially more opportunities in your field;
• Network and Build Connections: Networking is an essential aspect of job searching, and it becomes even more crucial during times of uncertainty. Attend industry events, connect with professionals in your field, and build relationships that could potentially help you secure employment opportunities in the future.

Conclusion

Brexit has been a divisive topic, and its impact on the UK job market remains uncertain. While there are concerns about changes in recruitment, skill demands, and employment rights, there are also indications that the job market has remained stable post-Brexit. Whether you are a job seeker or currently employed in the UK, it is essential to stay informed and be prepared for any potential changes that may come your way. As the final trade deals and agreements are still being negotiated, only time will tell the true impact of Brexit on the UK job market.