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Labour Market UK - do companies notice any effect of the BREXIT yet?

11/08/2016

Great Britain was our international market at this times "Personal Intensive" seminar in Linz. Not only the personnel market was presented and discussed, but also the BREXIT and its apparent impact. TRESCON-Partner Angus Keiller from CFR United Kingdom and Dr. Christian Kesberg, the Austrian Trade Commissioner for UK and Commercial Counsellor at the Austrian Embassy in London where telling about their experience, current impression and future expectations.

The overall expectations of the short- and long-term consequences by the BREXIT are consistently pessimistic. Companies hesitate to hire new people in 2016, even so it was budgeted. Real estate prices drop down; new rental agreements are mostly limited up to 3 years and new investments are decreasing. Due to the weak Pound on a short term only exporting companies profit from this development (provided the fact that they do not import the majority of the components or raw materials from abroad).

The most unpleasing point is the uncertainty about the future and about the further impact of the BREXIT. Emotionally it is easy for Great Britain to leave the EU, cause it never had a full persuasion to Europe. It always was a political and economical conviction. Therefore there is the clear opinion that the britisch economy will suffer more on this situation than the European.

As well known, Great Britain plans to reduce the immigration of Europeans, negating the fact that many sectors would not be able to operate anymore without foreign workers. There is also now answer how those sectors, like the health care or hotel business, could be kept fully functional then.

A very exciting discussion about a development which we did not yet experience in our economic area. The personnel market will become more volatile, but the overall impact will very much depend on the final negotiations between the UK and Europe and it will take some years, until we all will fully be able to see the overall implications.

If you want to know more about this topic, do not hesitate to contact Bertram Klinger
TRESCON Linz: +43 732 / 73 83 41, bertram.klinger(at)trescon.at 

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