An Analysis of Brexit's Effects on the Hospitality Industry's Labor

This report examines the impact of Brexit on the labor market within the UK hospitality industry. It begins with an introduction to Brexit and its implications, followed by an analysis of its effects on employment, recruitment, and skills shortages. The report highlights the decline in EU citizens entering the workforce and the resulting challenges for employers in finding skilled labor. It discusses the impact on recruitment, with a significant drop in EU nationals joining the workforce and increased difficulties in staffing. The report also explores the potential for staff shortages, the reliance on migrant workers, and the potential economic consequences. The conclusion summarizes the positive and negative impacts of Brexit, emphasizing the need for strategic adaptation within the hospitality sector. The report references various academic sources and online resources to support its findings.

In the hospitality
industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES...............................................................................................................................7

INTRODUCTION
Brexit is the withdrawal of United Kingdom from European union by following the June
2016 based on the votes with the help of 51.9% to leave. Respective decision effects on various
areas of the business (Gumbrell-McCormick and Hyman, 2017). It impacts everybody living in
United Kingdom however several businesses have always had to face the immediate requirement
to adapt the free trade in context of products and services. Respective report is based on the
effect of Brexit on the labour market in the hospitality industry which contributes majorly in
economy to gain potential outcomes.
MAIN BODY
“The impact of Brexit Upon the labour force in London in past 2 years in hospitality
industry”.
The overall impact of Brexit on labour and employment market of United Kingdom is not
only depends on the migration flows, but also on the wider factors of an economy that can be
different patterns of trade as well as decisions to operate business at proper location in order to
comply with changes in positive manner (Bergin and et. al., 2017.). The full fledge impact takes
time to arise and it could not be clear until or unless the effective development of negotiation.
Brexit is a fateful decision that finally lead towards withdrawal of United Kingdom from EU that
bring out some kind of significant concerns for labour market of UK not only in hospitality
industry. It is the fact that employers as well as employees specifically the reason that several
laws and regulations related to labour market which are derive by Europe.
EU and UK employment law:
In British landscape which shaped the Directives of EU on key employment issues or
concerns that are discrimination, working timing, maternity, paternity and part time with fixed
term workers, agency workers and collective consultation rights. It has been the more than a year
since the Brexit negotiation begins on June 2017, yet uncertainty around the countries future
arrangements with the EU shows the any kind of signs of abating. In that scenario the demand of

skilled labour and people grows in every kind of industry majorly in the hospitality industry
while the no. of EU citizens coming in the marketplace falls gradually, which create shortage of
people intensify (Lulle, Moroşanu and King, 2018).
The major impact on the labour market that has been observed after the Brexit that it sharply
decreases in the net employment scores, in hospitality industry that majorly required one of the
most skilled workforce in order to serve the consumers in positive manner. With the advent of
Brexit that proportion of employers looking for the increase in the staff, this is the indication of
continued but the robust demand consistent with the official data of employment.
Impact on the recruitment:
In the era since the June 2016 that are the period which demand for the strong labour, low
employment and dramatic approx. 95% drop in EU nationals that are connecting with the
workforce in between the year 2018 and 2016 that put one of great pressure on the recruitment.
As after the Brexit 44% of the companies faced a major difficulty in staffing during the year
2018 and 34% faced similar challenges in sustaining within hospitality industry that create
hazardous effect on the selection of employees within the organisation (Mohamed, Pärn and
Edwards, 2017.). In respective industry resource as well as talent planning study of 2017 that
conveyed that one fifth of organisation evaluate the increased cautiousness in perspective of
referendum voting. In context of hospitality industry the no . Of skilled role fallen in 2017 to a
20 a year later and 16 year in 2019.
One of the greatest major worry cause for Hoteliers revolves around the fact that no. of
staff in hospitality industry in UK draws from European migrants. In the current scenario
workers are free to enter into the UK market without any kind of permission or visa and
employers only needed to undertake the legal right to work before start the job in proper manner
(O'Reilly and et. al., 2016.). On that regards UK hotel, restaurant, leisure and entertainment
business the majorly over 4,00,000 are the migrant workers. They are the just average five star
hotels in London which is run by staff representing as many as 50 nationalities.
The major reason behind the shortfall in valued staff due to the many causes behind it
that are devalued pound and it is very much potential for government to bring new work scheme
that requires employers to take request or permission from the central government by employ
foreign national workers migrate from the EU which show significant so affect on their business
(Portes and Forte, 2017). The hospitality industry could suffer from the big staff shortage which

faces the recruitment crisis with the more than 60,000 workers are needed per year and ongoing
recruitment of 2,00, 000 employees are required to gain the power growth. So it can be said that
the shortfall in labour after the 10 years of Brexit would be one million in case EU migration fell
up to zero in year 2019.
From the above graph it has been evaluated in regards of Britain relationship with the EU
by removing all kinds of perilous shortage of labour in sector of hospitality that faces the
shortage of highly skilled labour in the economy which directly affects on their business in order
to reap important outcomes (Sampson, 2017). Removing the employee base at the end of skill
spectrum that are he worst at the high end in order to comply in many cases. Hotels and
restaurant s going to find out 1,20,000 staff willing at the minimum wage rate and need to renew
the third of their workforce to prepare the food and cleaning the firms. It can be going by
Illustration 1: No deal Brexit could cost Great Britain 750,000 jobs, 2019

backfill 132,000 people are willing to mop to live their livelihood in order to gain potential
outcomes in positive manner. It is estimated that almost 750,000 jobs will be lost as a result of
no deal exit from the EU that harms the profitability of business and their sustainable in the
marketplace in order to gain potential outcomes.
Hospitality and leisure industry of UK are majorly relying on the access to the pool of employees
on casual manner by using contract of zero hours’. Respective access should be controlled by the
new rules of immigration after the inception of Brexit in UK economy (Sumption, 2017. ).
There are kinds of issues that faced by them which is Change in legislation of VAT as well as
procedures, variations in dividend taxation, fluctuations in data protection legislation and many
more concerns that impact on business activities. The hospitality industry majorly rely on
European Union migratory employees as 15% of UK sector staff presently made up from them.
The major threat to ease of access to EU migrant about low skilled labour are already feeling
deterred by working in the UK which lowers down the level of productivity.
CONCLUSION
As per the given report it has been summarised that Brexit affect on the business
activities in both the positive and negative manner as it is very much potential for business to
appropriate kind of strategies and tactics in order to gain potential outcomes. It analysed that
with the advent of Brexit majorly hospitality industry faces the lack of skilled workforce that are
one of most potential necessity of the organisation as they donate one of their greatest efforts in
administrative as well as self-development in positive manner.

REFERENCES
Books & Journals
Bergin, A. and et. al., 2017. Modelling the medium-to long-term potential macroeconomic
impact of Brexit on Ireland. The Economic and Social Review. 48(3, Autumn). pp.305-
316.
Gumbrell-McCormick, R. and Hyman, R., 2017. What about the workers? The implications of
Brexit for British and European labour. Competition & Change. 21(3). pp.169-184.
Lulle, A., Moroşanu, L. and King, R., 2018. And then came Brexit: Experiences and future plans
of young EU migrants in the London region. Population, Space and Place. 24(1).
p.e2122.
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.
O'Reilly, J. and et. al., 2016. Brexit: understanding the socio-economic origins and
consequences. Socio-Economic Review. 14(4). pp.807-854.
Portes, J. and Forte, G., 2017. The economic impact of Brexit-induced reductions in migration.
Oxford Review of Economic Policy. 33(suppl_1). pp.S31-S44.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of Economic
perspectives. 31(4). pp.163-84.
Sumption, M., 2017. Labour immigration after Brexit: questions and trade-offs in designing a
work permit system for EU citizens. Oxford Review of Economic Policy. 33(suppl_1).
pp.S45-S53.
Taylor-Gooby, P., 2017. Re-Doubling the Crises of the Welfare State: The impact of Brexit on
UK welfare politics. Journal of Social Policy. 46(4). pp.815-835.
Vargas-Silva, C., 2016. EU Migration to and from the UK After Brexit. Inter economics. 51(5).
pp.251-255
Online:
No deal Brexit could cost Great Britain 750,000 jobs, 2019. [Online]. Available through.
<https://www.statista.com/chart/16377/no-deal-brexit-job-losses/>.
What does the UK hospitality industry look like post-Brexit?, 2019. [Online]. Available through.
<https://www.siteminder.com/r/trends-advice/hotel-management/uk-hospitality-
industry-brexit/#>.
Brexit impact on workforce trends, 2019. [Online]. Available through.
<https://www.cipd.co.uk/news-views/brexit-hub/workforce-trends>.

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