Clothing, cars take Brexit hit
The UK clothing and car manufacturing sectors will likely to be especially badly hit by Brexit as they sell a large proportion of their output to EU countries. Chemicals and pharmaceuticals will also take a hard knock as it imports 25% of its inputs from the EU, while finance is the most exposed services industry, according to research from the Institute for Fiscal Studies.
The IFS say exposure to new trade barriers will weigh more heavily on the top half of the earnings distribution. But while earnings inequality may fall, “it will come at the cost of making most UK workers poorer”.
Lowly qualified men are more likely to be employed in the most exposed industries than women, in particular workers in process, plant and machinery operative occupations. “These tend to be older men with skills specific to their occupation who, history suggests, may struggle to find equally well-paid work if their current employment were to disappear.”
Image: Steve Mullins