Introduction

Since the Brexit referendum in 2016, the UK has faced significant economic and social challenges. Current statistics show that unemployment stands at 3.5%, with an all-time high in employment. However, the ongoing negotiations post-Brexit have raised concerns about job losses and economic shifts, particularly in the manufacturing and financial sectors. This article explores the potential impact of Brexit on employment in the UK and examines the challenges and opportunities that lie ahead.

Companies Moving Abroad

The stakes are high, especially with the imminent deadline for the transition period set for December 31, 2022. Many companies are already considering moving their operations to countries within the EU or other regions to avoid potential trade barriers. Lithuania, despite being a less popular destination, is already experiencing business migrations. This trend could accelerate in the coming years as the UK's exit from the EU becomes fully realized.

Impact on Manufacturing and Services

Manufacturing businesses in the UK are particularly at risk due to the creation of a trade barrier around the country. As the UK loses access to the EU's single market, export-oriented manufacturing operations will face increased costs and logistical challenges. These obstacles will force some companies into bankruptcy, while others may relocate entirely to the EU. The manufacturing industry's decline will likely lead to significant job losses, particularly in low-skilled positions.

Financial Services and Other Sectors

Beyond manufacturing, financial services and other export-dependent sectors will experience similar challenges. Companies will need to invest in adapting to new regulations and establishing new operations in the EU. This process could be time-consuming and costly, potentially leading to a mass exodus of businesses over the next few years.

Brain Drain and Skilled Workers

The departure of skilled workers from the UK is another significant concern. The freedom of movement that characterized the period of being part of the EU has led to an exodus of highly-skilled professionals to the continent. This brain drain is exacerbating the shortage of skilled workers in the UK, particularly in industries such as technology, engineering, and finance. As a result, employers in these sectors are increasingly turning to EU citizens who hold dual citizenship, thereby creating new challenges and complexities in hiring and maintaining regulatory compliance.

Consequences for Low-Skilled Jobs

While the departure of skilled workers is a significant issue, it also has implications for low-skilled jobs, particularly in agriculture, food processing, and care homes. The UK has historically relied on migrant workers to fill these roles, but with the EU-AU labor restrictions, there is a pressing need to find domestic solutions. However, British workers tend to be less productive in these roles, with studies showing that British fruit pickers are less efficient than their migrant counterparts. This situation suggests that either wages will have to fall, or food prices will rise, or workers will need to be retrained.

Opportunities for High-Skilled Jobs

Despite the challenges, there are opportunities for the UK to thrive in certain sectors. Technologies such as software development, high-tech industries, and engineering can become areas of strength, provided the UK invests in education and training. The demand for highly-skilled workers in programming, product design, user interfaces, data science, and cybersecurity indicates that the future lies in these tech-driven fields. By building a competitive software and high-tech industry, the UK can mitigate some of the negative impacts of Brexit and capitalize on new economic opportunities.

Conclusion

The UK's post-Brexit employment landscape is complex and multifaceted. While the transition may lead to job losses in certain sectors, there are also opportunities for new industries to emerge and thrive. The key lies in adapting to the new economic environment and investing in education and training to develop a skilled workforce that can meet the demands of a rapidly changing job market.