Brexit: What Does it Really Mean for Jobseekers?

Jobsearch, Jobseekers / 03 July 2019

Brexit continues to loom over almost every aspect of life in the UK, and after over two years, we’re no closer to really knowing what’s going to happen. Whether you’re currently in employment or not, this level of uncertainty is probably a concern on some level – will it affect your chances of finding a new job? Will you be able to stay in your current role? Could your company relocate abroad?

We’ve rounded up some of the key areas of concern for jobseekers, and provided a rough overview of how these areas could affect your job hunt.

Employment

Let’s begin by looking at current employment rates. At the time of writing, UK employment stands at 76.1% (July 2019), which is exceptionally high. Unemployment is also at its lowest since 1974. Additionally, there are almost double the amount of jobs available now than in 2009. So far, this all seems like great news – there are plenty of jobs available, and plenty of people employed.

While these statistics are certainly an indication of the resilience of the UK job market at the moment, however, changes could be on the way.

Some commentators have noted that the high employment rate could partly be linked to businesses wanting to avoid investment in the current climate, instead choosing to hire more employees. The reason for this is that letting additional staff go is cheaper for businesses than major investment in the long run, and not as potentially damaging.

There are also some signs that the job market is softening, which means we could see less jobs becoming available in the coming months. If this happens, then job hunting could get significantly harder than it is now.

Going by the statistics alone, then, it would seem that Brexit has had little effect on job hunting prospects. That said, these overall statistics don’t take into account factors like jobs per sector or occupation, which present quite a different picture depending on the industry. Jobs are more competitive and harder to find in the information and communications industries for example, while the number of vacancies in the service and restaurant sector is up.

What It Means for Jobseekers

According to the data above, we can see that the employment market is still fairly strong (although it could be showing signs of wobble). This means that in a broad sense, now is a good time to be searching for a job, as recruiters and employers are still actively on the lookout for talent.

Having said that, the more in depth we go, the murkier things get. It might be a good time to find employment, but depending on how Brexit plays out, businesses could start cutting work forces down. It also makes quite a significant difference what kind of job you’re looking for.

There is high demand in the health and care sectors, while a number of manufacturing centres have been closed down or are to be relocated. Additionally, we could be at the start of an employment sector slump, if the most up to date indications continue on their current course.

Overall, things might not be too bad now, but be prepared for them to get more difficult.

Working Rights

Workers’ rights are almost certain to be affected by Brexit, and have often been at the forefront of the Brexit debate. Some claim that current EU imposed workers’ rights have been a thorn in the side to business, stifling profit and performance as they have to jump through unnecessary hoops. Others have said that the same EU working laws have contributed to a safer, fairer working environment.

Again, there’s currently no definitive way to know just how much of these rights will change, if at all, as a result of Brexit – it depends exactly how, if, and when we exit the EU, and under what terms.

Currently, some examples of EU working rights laws we have in the UK are:

The Parental Leave Directive: Allows parents to take up to 18 weeks unpaid leave from work for childcare needs.
The Right to Equal Pay: Has lessened the pay gap between men and women in the UK.
Anti Discrimination Rights: Added to the domestic UK discrimination laws by including protection for age, sexual orientation, and religious beliefs in addition to race, gender, and disability.
Atypical Workers’ Rights: Helps to protect agency, temporary, and part time workers by ensuring equal treatment and better job security.

While leaving the EU might not mean we lose these rights (some bodies have even suggested that should we leave, it would be the perfect opportunity to improve this legislation further), there is the possibility that working rights could be adversely affected, although this will likely be heavily dependent on the government of the time’s preferences and priorities.

What it Means for Jobseekers

While all of these laws are extremely important for any employees and jobseekers, the Atypical Workers’ Rights are especially relevant. Temping is a good way to earn while career hunting, and a fall back option for many jobseekers. Under the current legislation, you’re protected from waiving your unfair dismissal rights, and have equal access to permanent opportunities.

There are certainly still areas that need improvement however, as typically temp and agency workers earn less than their directly employed counterparts. Again, whether these rights are built upon or eroded by Brexit remains to be seen, but right now, they still apply to UK and EU national jobseekers.

Some essential laws, including the national minimum and living wages, are domestic UK law and will be unaffected by Brexit directly (although it could be argued that the economic/employment sector impacts from Brexit are almost certain to have a knock on effect here).

Overall, no big changes here as yet, but it’s worth keeping an eye on how this develops as a jobseeker, especially if you’re looking for or involved with temporary work.

Free Movement

Another hotly debated topic, free movement in the EU has undeniably opened up a huge amount of opportunities for both jobseekers and employers, domestically and abroad. Certain parties often paint this as a negative, but the fact is that being able to recruit from a wider pool of talent is beneficial for both jobseekers and employers, wherever they might be in Europe.

We are often told about the amount of EU nationals that make up the UK workforce, but we rarely hear about the amount of UK nationals that contribute to the EU workforce. There are around 2,000 UK nationals working in EU Institutions in Brussels alone, and while there are no definitive figures, the UN estimates around 1.3 million British born people are living and working in the EU.

While there are no concrete answers as yet, it is highly unlikely that freedom of movement will be affected too much. The fact is that companies will still look for talent in the EU just as much as they do in the UK, so working out some kind of similar agreement to what’s currently in place for the easy movement of workers is a fairly strong possibility.

What it Means for Jobseekers

If you’re an EU national looking for employment in the UK, then this is certain to be an area of major concern. Thankfully, EU nationals have already been given guarantees by the government that they have the right to stay and work whatever the outcome of Brexit, provided they apply for settled status. Additionally, according to the ONS, there are more EU nationals in work than ever before, which means employers both large and small are still actively hiring EU nationals for a variety of roles.

Business Brexit Reactions

If there’s one thing business doesn’t like, it’s uncertainty. Unfortunately, the Brexit situation is the very definition of uncertainty as things stand. This means that almost all businesses will be doing everything they can to try and prepare for the worst – a number of companies have already started stockpiling food, medicines and car parts to prepare for the possibility of a no deal Brexit.

We’ve already seen a number of major companies move their manufacturing or business overseas too, in order to continue to take advantage of EU membership. Imports and exports are the areas that will be hit hardest in the event of a no deal Brexit, meaning a huge amount of businesses will be affected both directly and indirectly. Leaving the EU could cause increased importing costs and delays, causing additional knock on effect for logistics and haulage related businesses as well as their clients.

What it Means for Jobseekers

The closing of plants and moving of companies is never good for jobseekers. This means less opportunities, and also a less diverse range of potential roles to find. While the hardest industries hit so far have been car manufacturing and the financial services/banking sector, more closures or relocations are possible depending on what happens in the coming months.

In Conclusion

So, is Brexit ultimately a good or bad thing for your job search? There’s no definitive answer at the time of writing, but there are certainly a few important things to consider. The positives so far seem to be:

Companies are still hiring.
EU Nationals are still being hired.
The employment sector has remained strong so far despite the turmoil.
EU working rights are still in place

The problem is, these positives might not last, because:

There are signs the employment sector is about to slump.
Important businesses are closing or leaving the country.
New roles may not be secure.
Working rights could be easily undone post-Brexit.

The best thing that you can do as a jobseeker is follow the lead of businesses, and be as prepared for any eventuality as possible. In practical terms, this might mean considering a broader range of employment options, making sure your CV is as good as it can be, and doing everything you can to ensure you are the stand out candidate for any interviews or opportunities that you create.

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