Comprehensive Report: Brexit's Effects on the UK Labour Market

This report provides a comprehensive analysis of the impact of Brexit on the UK labour market. It begins with an introduction defining Brexit and its implications, followed by a literature review that examines various perspectives on the topic. The main body of the report delves into the effects of Brexit on employment rates, the construction industry, wages, and tax implications. It explores the views of multiple authors and sources, highlighting the potential benefits and drawbacks of the decision to leave the European Union. The report discusses issues like skilled labor shortages, the impact on foreign investment, and the challenges faced by construction companies. The conclusion summarizes the key findings, emphasizing the long-term effects of Brexit on the labor market and the overall economy. The report references several books, journals, and online resources to support its arguments and findings.

ACADEMIC SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LITERATURE REVIEW............................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Brexit is a mixture of two words which are British and exit. The United Kingdom wants
to withdraw the European Union and the decision is still pending and the date has been shifted to
January 2020. It was after Maastricht Treaty in 1992 that the EU was established and the
pressure on the Prime Minister of UK, who at that time was David Cameron has to continue with
the EU membership. It is because of Brexit there are going to be several changes in the labor
which is what is going to be discussed in the further report. For any country to take such a huge
decision it is very important for them to understand the impact it would be creating on the
country.
MAIN BODY
LITERATURE REVIEW
As per the view of (Hall and Wójcik, 2018) the country United Kingdom will be making
more profits if they continue to try to quit the European Union because it will be very beneficial
for them. There are a lot of markets which are waiting to entire into the country but because of
the European Union they are not getting permission which is not letting new company's expand
themselves in other countries and not letting the country have a good GDP. By the reports it is
noticed that there are about 23% customers who are waiting to try to buy the British food
because of their decision of leaving the Union. The British products will make a lot of sales
which will be very beneficial for the company and that is a positive sign for leaving the union.
This may cost a lot to the manufacturers, but they will be able to send their products faster to the
market. There will be no language barriers if this union is exited by the country.
As per the view of Coyle, (2016) Brexit has affected the labor force of construction
industry, Due to brexit economic condition was very down hence construction companies was
unable to pay high salaries to their staff members. In such condition employees was unable to get
standards wages rate. This has also affect supply of labor force (Market Focus: Brexit’s impact
on UK labour marketBrexit and the skills crisis. Construction, 2018). Statistical records show
that in the year 2018 there was no improvement or growth in construction sector, infrastructure
activities were very slow and people were less interested in building new houses. After Brexit
employment rate gets increased in the UK and many of the construction companies have
terminated their staff members because these firms were unable to bear their expenses or
salaries.

In opinion with (Sweet and Smith, 2017) the worry for the country is the taxes which will
be put on the country if United Kingdom leaves the Union then they will have to pay CCT which
are going to be very high. All the products which are coming in the country and going out of the
country will have to face these factors. The country has already losing a lot of employees in the
company's because of the uncertainty in the country. There will be low wages when the country
leaves the union and no one wants to work for lower wages because it is very important to be
paid according to the hard work they are putting in the company. There will be more jobs for the
country men and the country will be slowly developing on their own and that will be a great task
for the country.
Morris, (2019) stated that Brexit has decreased recruitment rate in the construction
industry, there was slow down of 11% in this sector. Brexit has badly affected economy of UK,
after that country was facing skills and material shortage problems. That is why it was very
difficult for construction companies to invest such large amount in constructing new building.
This has reduced demand of new workforce hence people were not having adequate job
opportunities that has impacted their living standards as well. As EU government is providing
funds for infrastructure development but after Brexit there was no sufficient funds were available
to develop these facilities. Hence EU funding were reduced that has indirectly affected labor
force. People were getting jobs in outside the EU countries which has created issues of EU.
Mohamed, Pärn and Edwards, (2017) stated that Brexit has reduced the Value of Pound
sterling by 20% hence many construction companies have faced huge losses hence these
companies were not capable to manage such large workforce (Impacts of Brexit on the
Construction Industry, 2019).
As illustrated by (Coyle, 2016) there are a lot of experienced skills and trained employees
who willing want to leave the work because there are going to be a lot of changes in the country
and there is no more stability in the country if the country leaves the union. There are not cheap
labor found there and now since the country will be paying a lot of taxes they will have to find
cheap labor or the labor which has already been doing their work there to stay in the country and
continue the work. It will be very wise if the country does not dismiss the talent which is coming
in the country because of the European Union. In London there were a lot of company's which
started within the country, but they are finding it too difficult for them to reach out for the other
countries because of the European Union policies. The country has found a lot of profits

regarding the fact that the employment of the British people was lot, and they did not have as
much as freedom as they should be while working. They want to be independent and make
decisions for themselves. Brexit can be very useful for the decision-making of the country on
their own but it will have a great impact on the labor and company's who were making the GDP
of the country better.
As noted by (Mohamed, Pärn and Edwards, 2017) there were a lot of free movement of
the people in the countries, and they were making creative job opening, innovations, films, etc
but now there will be a lot of changes in the countries which is not going to be like by everyone.
Though this decision is being taking by keeping in the long run of the country in mind but not
everyone can understand that factor. This is not being liked by the labor which is working right
now in the United Kingdom because they were getting freedom to do what they like, and they
were getting fair treatment in the work place but after Brexit the country is going to change and
the priority is going to be the people who are living in the country. Fair treatment is very
important for any labor to work in any organization and the wages is also going to be low till
there is no stability in the market and also the rates of the products will increase because of the
taxes which are going to be applied by the European Union. The smuggling of the product will
become a great risk because the products have to be got in the country so that the company's can
make a profit, and they will not be able to pay such high taxes for the products which will of
course lead to smuggling in the country.
In view of (Morris, 2019) the reason this is required by the government is because they
will have to make the country be independent some time. Before, this measure could not be taken
because the country was not ready for it and the Prime Minister that time was under a lot of
pressure. Brexit could result in foreign investors withdrawing their money from the UK property
market, resulting in a reduction in prices and a rise in the availability of original investment
properties. It has been analyzed that Brexit is being disastrous for construction industry. For the
next 15 years the economic growth will be stunted by 2 to 8 percent. Brexit uncertainty is also
holding back the United Kingdom market. It has caused damage to stock levels and also the
stock prices have gone low in this. Offices and staff of European baking authority and European
medicine's agency which is currently in London will have to shift out of the country. UK will
lose the shareholding in the European investment bank which is 16% and that is a great
drawback but when the bigger picture of the country is seen then that is very good for the

country. The labor will lose their jobs because of Brexit, but they will slowly grow back to what
they were. The labor will get a benefit after everything settles down in the country (McCulloch,
2019).
CONCLUSION
The labor of United Kingdom will not be satisfied with the low wages job in the country
and the products prices going high and not affordable but later the change will be seen in the
country and will be appreciated by everyone. The government of the country is taking this
decision because they want to make the country better so that they can make the most for the
people who live in the country.

REFERENCES
Books and Journals
Coyle, D., 2016. Brexit and globalisation. Brexit Beckons: Thinking ahead by leading
economists, p.23.
Hall, S. and Wójcik, D., 2018. ‘Ground Zero’of Brexit: London as an international financial
centre. Geoforum.
McCulloch, S.P., 2019. Brexit and Animal Welfare Impact Assessment: Analysis of the Threats
Brexit Poses to Animal Protection in the UK, EU and Internationally. Animals. 9(3).
p.117.
Mohamed, M., Pärn, E.A. and Edwards, D.J., 2017. Brexit: measuring the impact upon skilled
labour in the UK construction industry. International Journal of Building Pathology and
Adaptation. 35(3). pp.264-279.
Morris, L.D., 2019. ‘Moralising’Welfare and migration in austerity Britain: a backdrop to Brexit.
European Societies. 21(1). pp.76-100.
Sweet, R. and Smith, D., 2017. Will China build tomorrow’s Britain? Examining the impacts of
Research and Innovation. 8(1). pp.2-12.
Market Focus: Brexit’s impact on UK labour marketBrexit and the skills crisis. Construction.
2018. [Online]. Available through
<https://www.gardiner.com/publication-uploads/1805_TPI_2Q_2018_online-
version.pdf>
Impacts of Brexit on the Construction Industry. 2019. [Online]. Available through <
https://www.fticonsulting-emea.com/~/media/Files/emea--files/insights/articles/impacts-
brexit-construction-industry.pdf>