Repercussions of Brexit on contracting and permanent employment market in UK
If you are concerned about the employment market in the UK, you should pay special attention towards the changes that were introduced along with the recent EU referendum. Even though the implications created as a result of Brexit are somewhat difficult to understand, you don’t need to worry too much about it and there is a possibility for you to remain optimistic.
The repercussions of Brexit create a bigger impact on the contractors when compared to the permanent counterparts. However, Brexit has given life to a time of uncertainty, which would freeze the permanent headcount while increasing the contract employees. We saw a similar situation during the economic turndown, which took place back in 2008. At that time, the demand for accountancy and finance candidates improved significantly. As a result, people who didn’t have the opportunity to land in jobs related to economic and finance sectors were provided with the chance to get into companies as contractors.
Unfortunately, we are not too sure about the consequences, which can take place as a result of Brexit. As a result, we are not in a position to predict what would happen within the next few years. This attaches uncertainty to some of the predictions that are being made about the employment market. However, it is possible to predict that the uncertainty would increase the demand that is available for the contractors. Most of the companies located in the United Kingdom have started recruiting contractors instead of permanent employees. This fact can be verified from the statistical records as well. In fact, the fastest rate of recruiting temporary staff has been since 2015 within the country.
The recruitment of permanent employees within UK has temporarily frozen as a result of Brexit. The uncertainty created within the country can be considered as the main reason behind above mentioned fact. Therefore, permanent employees within the country don’t tend to get into new job opportunities as well. The entire employment market within the country has become chaotic.
Immigrants have found it as a difficult task to get into permanent jobs within the United Kingdom due to the negative consequences of Brexit. Even the residents within the country are being rejected from getting permanent jobs. As a result, most of the chances that were available for the immigrants have vanished. This has created a negative effect on the public services as well as in the economy.
We are too early to predict about the future of Brexit. It seems like the battleground in between the EU and UK is still dragging with all the divorce talks. Therefore, we will have to wait for a couple of months before we come into a conclusion about the future of employment market within the country. However, we can come into a temporary conclusion about the above mentioned fact and it is clear that the demand for temporary employees would increase, along with the decline of permanent employee recruitments.