The Job Market Following Brexit

The Job Market Following Brexit

Job market opportunities in light of the Brexit vote

The long-running EU referendum campaign is over, the people of the UK have voted to leave the Union and the Prime Minister has resigned. So what happens now for the UK job market?

If the Leave campaigners are correct, then the UK job market will be boosted by the Out vote, in the long term at least. They maintain that the fact that the UK will now be able to negotiate its own trade deals will allow more jobs to be created. It was also claimed during the campaign that EU regulations are estimated to have cost UK companies £33.3 billion during 2015, and that not having to comply with these rules will thus lower costs and create jobs.

Remain campaigners said that three million UK jobs are linked in some way to our EU membership. However, just because these roles are linked to the EU does not automatically mean these jobs would be lost upon leaving the Union.

Right now, the UK job market is very healthy, and our unemployment rate of 5.5% is much lower than in other leading economies.

There have been suggestions during the campaign that the need to allow unrestricted access to the UK labour market for all EU citizens has prevented companies from recruiting the skilled labour they need from non-EU countries. The terms of the UK’s withdrawal are still to be determined, but if the country exits the European single market, then the need to give priority to workers from the EU, regardless of their level of skills, will disappear.

Employers should note that, as of now, all employment legislation that resulted from an EU Regulation or Directive remains in force, and that these measures will remain in force in the long term unless the UK Parliament votes to repeal them. For example, the EU directives on working hours, right to breaks during employment and the right to paid holiday have all previously been incorporated into UK law.

The vote to leave the EU is also not effective immediately. Chris Grayling MP, the Leader of the Commons, who campaigned for Leave, has suggested 2020 would be a realistic time to break ties with the Union. The earliest it will happen is two years after the Government invokes Article 50 of the Lisbon Treaty, and in his resignation speech Prime Minister David Cameron MP said this would not occur until his successor was in place, which is expected to be in October 2016.

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