Will the UK face Job Losses Due to Brexit?

The Brexit merry-go-round is still spinning, but it may just be slowing down and coming to a stop. When it does stop nobody can be absolutely certain of what will happen, but there is a good chance that the UK economy will lose jobs as a result. Adam Coleman, B2B trend-watcher reports

The good news is that many of the UK’s cities, such as Manchester, Leeds, Glasgow and many more are already boasting strong economies to cope with such events. Manchester from that list has a particularly strong economy, beating UK and regional averages in economic fundamentals. So much so that in spite of the negative expectations that Brexit ultimately generates, there is still an unending comprehensive listing of jobs in Manchester  via recruitment brands like Jobrapido.

For now, let’s delve deeper into potential job losses after Brexit…

Which Jobs Will Be Lost?

In the capital, the jobs under the biggest threat are financial jobs. Large banking headquarters have set up camp in London over the last decades because they had easy trading and access to the rest of Europe. If a no-deal Brexit becomes a reality, these jobs may go elsewhere and back into EU territory to avoid trading headaches and additional costs.

There is also an argument that many manufacturing jobs could be lost, specifically car manufacturing. The UK and Germany have always had a healthy trade deal in terms of manufacturing in the automotive industry and those jobs could be under threat if a no-deal Brexit were to occur. They could also be under threat even if there was a deal.

How Many Jobs will be Lost After Brexit?

KU Leuven is one of the top universities in Europe and was commissioned to research the impact of a no-deal Brexit on jobs across the continent. The findings revealed that the UK would naturally suffer from the most job losses, estimated at around half a million.

Yet, it is also important to realise that the UK would not be the only country to suffer from Brexit. Germany would lose a colossal amount of jobs as well, estimated around 300,000 redundancies. Belgium, The Netherlands and many countries that make up northern Europe will feel the effects the most, with southern European countries much less effected, including Spain, Italy, Croatia but with the exception of Portugal.

When the job losses were calculated in the UK, the per capita income would equate to a reduction of 3,000 euros. Even though Germany’s redundancies were comparable to the UK’s, their capita income reduction would only be 100 euros.

The Key Takeaways

The uncertainty of Brexit makes it extremely difficult to predict the future. The way that the UK breaks with the EU will be crucial in minimising damage in the job market but the UK is set to lose a substantial number of jobs. The silver lining among this is that many of the UK’s cities have remarkably strong economies at present, which will cushion any damage left by Brexit.