Wednesday, February 8, 2023

Brexit causes a deficit of 330,000 workers for the United Kingdom

The UK economy faces a deficit of around 330,000 workers, the equivalent of 1% of the workforce, after the end of the free movement of people as a result of the new regulations implemented after the country’s departure from the Union European (EU).

“By June 2022, there was a significant shortfall of around 460,000 EU-origin workers, partly, but not fully, offset by an increase of around 130,000 non-EU workers,” notes the Center for European Reform. “The net loss of workers, around 330,000, is 1% of the workforce,” he concludes.

In this sense, the ‘think tank’ warns that the shortage of workers from outside the United Kingdom is mainly concentrated in sectors that disproportionately employ less qualified workers.

Thus, estimates point to a lack of some 128,000 workers of community origin in the transport and storage sector, 8% of total employment in the sector, as well as a deficit of 103,000 in wholesale and retail sales. minor, 3% of the sector; about 67,000 in room and board, 4% of employment; around 47,000 in manufacturing, 2% of the sector; about 46,000 under construction; and about 32,000 in administration.

In the opinion of the study authors, the new system put in place in general is working broadly as promised by the Brexit supporters and EU citizens no longer have an automatic right to work in the UK, for which they must apply for visas.

“The conditions of the new system, while liberal, are too onerous to compensate for the loss of free movement in low-skilled sectors of the economy, which has led to labor shortages,” the report warns, noting that, despite Given the uncertainty about the impact, it is likely that there will be a combination of higher wages and prices and less production, especially in work that is difficult to automate.

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