IMPACT OF BREXIT ON MIGRANT
WORKERS IN THE UK
An Academic presentation by
Dr. Nancy Agnes, Head, Technical Operations, Tutors India
Group www.tutorsindia.com
Email: info@tutorsindia.com
Today's Discussion
OUTLINE
Introduction
Impact of Brexit on Migrant Labour in the UK
Conclusion
INTRODUCTION
The raging deliberations with regards to the membership
of the UK to the European Union (EU), a major
campaign revolving around Brexit was that it would
provide the UK with increased control over the number of
immigrants who enter the UK from various member states
from the EU.
Many local individuals have voiced an apprehension that
greater immigration levels would have made a negative
impact on their jobs, quality of life and wages
For the past two decades, a tremendous growth in
immigration was observed and a substantial part of this
growth has been from other EU nations.
This is particularly true post 2004 and the accession of eight East European
nations (the A8).
In the period ranging between 1995 and 2015, total immigrants belonging to
other member states from the EU living within the UK had witnessed a triple
growth from 0.9 million to 3.3 million .
The share EU nationals grew from 1.5% to 5.3% of the overall total population
and from 1.8% to 6.3% of the working age populace [2] (adults falling in the age
group of 16-64).
The national overall income on the whole has experienced a growth owing to higher
immigration (increase in number of workers would increase the GDP) and has been
an advantage for immigrants who have moved to the UK as they are comparatively
better off in the UK as compared to the states they belonged.
But it needs to investigated whether this trend has been economically detrimental to
natural born citizens of the UK? Also, a necessity has been felt to understand the
ramifications of Brexit on migrant workers in the UK.
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Figure 1: Overall Immigration to the UK from EU and Non-EU States
Source: Office for National Statistics [3]
IMPACT OF BREXIT ON
MIGRANT LABOUR IN THE UK
Migrant workers UK both from EU and non-EU nations
abound in the UK and they prove to be quite significant for
several industry sectors.
However, there have been concerns that Brexit could curb
the flow of migrant workers into the UK.
Reduction in the labour market could result in an undue hike
in labour costs, in terms of recruitment as well as wages, and
prices which could then be transferred to the end user while
having the potential for lowering profit margins or sales
volumes .
Modifications within the labour market in the UK have been observed as per the
employment figures which indicated that unemployment within the UK has been at a
very low rate since past 42 years (4.2% as on 15th May, 2018) .
The rate of employment for people from the EU was at its peak, but it was forecasted to
drop owing to Brexit and a clear indication of this trend could already be witnessed
when the workforce from EU within the UK fell by 28,000 over a period of the past 12
months.
This drop in the number of migrants from the EU owing to higher rates of employment
and the number of EU migrants going back to their home states tends to pose a major
challenge over a short-term as well as long-term period for organizations within the
UK, as far as their human resource management practices are concerned .
Challenges in the short-term for organizations could emerge owing to uncertainty of
the possible conditions of employment which could be enforced across EU workers
working in the UK, and the consequent challenges of having the capability to satiate
manpower requirements in future with duly skilled and qualified personnel.
To tackle these challenges, it would need human resource managers to evaluate
existing as well as future strategies for talent management.
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CONCLUSION
The impact that Brexit would have on the EU labour force within the
UK would present challenges that might be beyond the control of
organizations, however organizations are in a position to tackle such
challenges by initiating certain actions.
This would involve a reassessment of their strategies for talent
management.
It would also include evaluating the influence of more limiting policies
of immigration on their existing workforce and the manner in which
these can be tackled by seeking alternative strategies for recruitment
within diverse markets.
The focus of talent management would also be on the necessary roles within
organizations and from the context of Brexit, it would become necessary to include
what the necessary roles might be and the manner in which an organization would be
able to develop other employees to take-up such roles.
Considering the possible modifications within the macro-environment, the talent
management of an organization would only need to evaluate these, but also evaluate
how its internal context could satiate such challenges with a view to sustain success.
This would require the organization to initiate a scenario planning in order to make sure
that the response undertaken is highly appropriate and proactive.
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