Brexit and the Job Market

Brexit and the Job Market

Brexit and the Job Market

Fears for UK job market lessen as Cabinet agrees to pursue Brexit transitional period

In the immediate aftermath of the vote by the UK people to leave the European Union (EU), there were understandably a number of concerns raised about the effect this would have on the UK jobs market, particularly in financial services. However, one year and three months after the Brexit vote, the employment rate in the UK is at near record levels.

Some financial services companies have certainly been exploring the feasibility of moving some UK-based roles to other European countries. However, many of the companies would probably only do this if the UK was to exit the Union without a trade deal, or with a very poor deal. In the meantime, however, the UK Government continues to do all it can to secure favourable exit terms.

The outlook for business and employment in the UK also looks more positive as the Government appears to have recognised that a lengthy transitional period will be necessary following the UK’s official exit from the EU in spring 2019. Even some of the Government ministers who vigorously campaigned for a Leave vote now appear to recognise that this transitional period will be required. A transitional period is likely to involve the UK retaining a trading arrangement similar to the current one for several years after 2019, before a new form of long-term relationship can be agreed.

The current Labour opposition, which could conceivably form the next Government by 2022, or earlier, has gone further, and has committed the UK to remaining in the single market throughout any transition period.

In a recent radio interview, Chancellor of the Exchequer Philip Hammond MP, who campaigned for a Remain vote, suggested that:

“During a transition period … we would hope to have continued access to the European market,”

and added that “many things will look similar” on the day after the UK’s official exit from the EU.

Environment Secretary Michael Gove MP, who supported the Leave campaign, also recently said:

“As we leave the European Union, we will have an implementation period which will ensure we continue to have not just access to labour but the economic stability and certainty that business requests. That is something around which the government and the cabinet is united.”

Search For a Job