How Employment across the EU Will Be Affected By BREXIT

brexit unemployment


The apparent exit of the UK from the European Union (EU) will certainly bring a rise in the levels of unemployment. This is because, with the exit, there is expected to be a decline in economic activity. It is also expected to bring about job losses at least in the short term. This is because of the subsequent fall of growth and investments across the United Kingdom.

brexit unemployment

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Uncertainty and Loss of Employment

A factor that will contribute immensely to loss of employment is the uncertainty that BREXIT will bring across the region. Uncertainty has never been good for business and it tends to discourage business. Job seekers will now shift to other “greener pastures” in the European Union. It has been observed that many job applications are being received in Ireland specifically by people with Irish ancestry. Another observation is that workers are now looking beyond the confines of the European Union for employment opportunities.

The BREXIT created a shallow recession in the second half of 2016, which increased unemployment levels by about 6%. This rise in unemployment would consequentially bring a pressure on the incomes of households.

Another consideration is the employee market. It is probable that many of the EU workers might leave the UK after the BREXIT. This could bring a shift in the job market towards employees. Thus, BREXIT will have a negative connotation to businesses that have to fill positions and also to retain staff. The recruitment process would be a costly affair and it would force businesses to outsource. The only parties that would benefit are those businesses that are in the recruitment industry

However, BREXIT may bring a load of legal changes for employers as far as employment and labour are concerned. The government might contemplate changing the working times and agency workers directives that are associated with the European Union.

After the mass exodus of skilled labour after BREXIT, the government will be compelled to train more skilled British workers to replace those who are leaving. The most emphasis is being placed on apprenticeship and matching the right people to the right skills.


Foreign Investment

The BREXIT will have a negative impact on foreign direct investment. This will inevitably put UK jobs at risk. The big shock that BREXIT brought on the economy discouraged foreign direct investment. The UK has all along been seen an international hub due to its large pool of talent. This international talent coupled with low market regulation and language have strategically positioned it. Thus, this attractiveness will be lowered due to the BREXIT factor and as such foreign direct investments from the European Union will take on a downward trend.



In conclusion, BREXIT will have a major impact on the workforce of the UK and will also affect its ability as far as recruitment is concerned. Foreign direct investment will also reduce. Both of these are factors closely tied to employment and thus employers and employees would be urged to brace themselves for these effects.


The defection of the UK from the European Union is bound to have some implication as far as employment is concerned. Employers and employees ought to weight their options carefully after a careful analysis of these implications.

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