The Brexit vote is forcing British companies to increase their pay offers to attract new workers in the face of a shortage of EU employees. The Recruitment and Employment Confederation says there are not enough people in the economy for all the currently available roles.
“We already know that EU workers are leaving because of the uncertainties they are facing right now,” says REC head Kevin Green. “We therefore need clarity around what future immigration systems will look like. Otherwise, the situation will get worse and employers will face even more staff shortages.”
And the country’s £7.3 billion management consulting sector is set to take a hit due to talent shortages caused by Brexit, according to a new report from Source Global Research. While a British EU exit will likely drive a lot of work for UK consultants, the market’s heavy reliance on the flow of talent across borders will leave it open to any interruption to HR talent.
“Such is London’s reliance on a flow of talent across its borders – one leader of a global strategy firm recently told us that 100% of internal applications for positions came from outside the UK – that any interruption to that flow is likely to have a significant impact,” says Edward Haigh, director of Source Global Research.
Net UK migration fell to its lowest level in three years in August with over half the decline caused by EU citizens leaving, and fewer arriving, since the Brexit vote.