How will BREXIT affect the recruitment industry?

After Brexit, all 3.8 million EU nationals living in the UK and EU nationals wanting to enter the UK will need to register for ‘settled status’ to continue to work and live in the UK.

ADVANTAGES

New markets

One of the biggest advantages is “ambitious economic partnerships with Australia, Chile, Canada and Japan among US and China.” BBC reported that Theresa May said.

Buying British

The buying British Report by YouGov reported that “23% of consumers are more likely to try and buy British food as a result of the UK’s decision to leave the European Union.” This will be an opportunity for high volume manufacturers.

Faster product turnaround time

High volume manufacturers it may cost more to initially source products from inside the UK if they are then manufactured and sold in the UK too, this could lead to faster product turnaround time.

DISADVANTAGES

Cost Rises

One of the biggest disadvantages could be the issue of increasing costs. The Guardian points out that ‘58% of manufacturing companies said they would have to increase prices to offset foreign currency costs.’ The Guardian carries on to state that ‘nearly half said they had already passed some of these additional costs on to customers.

Loss of EU workers

According to the Office of National Statistics there were 132,000 (5%) less EU nationals working in the UK between quarter three 2017 and 2018. Foreign workers can’t trust that everything will be ‘OK’ post-March 2019, they need stability, so they’ve already upped and moved on elsewhere in the EU and beyond.

Reduced growth and innovation

Many companies decide to hold off trying to grow their business, instead deciding to wait and ride out the uncertainties to see if they can get a better lie of the land.

CONSEQUENCES FOR THE UNITED STATES

The euro fell 2% to $1.11. The pound fell. Both increased the value of the dollar. That strength is not good for U.S. stock markets. It makes American shares more expensive for foreign investors. As a result, gold prices rose 6% from $1,255 to $1,330. 

A weak pound also makes U.S. exports to the U.K. more expensive. It affects the U.S. farming and manufacturing sections. The U.K. is America's fourth-largest export market.

U.S. companies invested $588 billion and employed more than a million people. These companies use it as the gateway to free trade with the 28 EU nations. Many have opened subsidiaries elsewhere in Europe to protect against a hard Brexit or no deal.

Britain's investment in the United States is at the same level. That could impact up to 2 million U.S./British jobs. It's unknown exactly how many are held by U.S. citizens. The uncertainty over their future will dampen growth. 

Brexit is a vote against globalization. It takes the United Kingdom off the main stage of the financial world. It creates uncertainty throughout the U.K. as The City seeks to keep its international clients. U.S. stability means London's loss could be New York's gain.  

SOURCE
https://www.recruitment-international.co.uk/blog/2018/09/how-will-brexit-affect-recruitment
https://www.sales-i.com/3-advantages-and-disadvantages-of-brexit-for-high-volume-manufacturers
https://www.thebalance.com/brexit-consequences-4062999