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Immigration and the UK Economy after Brexit Docx

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Running head: IMPACT OF BREXIT ON MIGRANT WORKERS
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TutorsIndia/Resources/Assignment/Political
Impact of Brexit on Migrant Workers in the UK
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IMPACT OF BREXIT ON MIGRANT WORKERS
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1.0 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 [1]. 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 [2]. 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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IMPACT OF BREXIT ON MIGRANT WORKERS
Figure 1: Overall Immigration to the UK from EU and Non-EU States
Source: Office for National Statistics [3]
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IMPACT OF BREXIT ON MIGRANT WORKERS
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2.0 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 [4]. 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 [4]. 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)
[5].
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 [5].
IMPACT OF BREXIT ON MIGRANT WORKERS
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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 [6]. 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 [7]. 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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3.0 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
IMPACT OF BREXIT ON MIGRANT WORKERS
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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.
IMPACT OF BREXIT ON MIGRANT WORKERS
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References
[1]
J. Wadsworth, S. Dhingra, G. Ottaviano, and J. Van Reenen, “Brexit and the Impact of
Immigration on the UK,” CEP Brexit Anal., vol. 5, pp. 34–53, 2016, [Online].
Available:
http://library.kiet.re.kr/_MultiData/krms/00040/427/BREXIT
2016.pdf#page=50.
[2]
United Nations, “International Migration 2019,” 2019. [Online]. Available:
https://www.un.org/en/development/desa/population/migration/publications/migrationr
eport/docs/InternationalMigration2019_Report.pdf.
[3]
Office for National Statistics, “Migration Statistics Quarterly Report: February 2016,”
2016.
https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/inter
nationalmigration/bulletins/migrationstatisticsquarterlyreport/february2016#netmigration-to-the-uk.
[4]
Norton Rose Fulbright, “Immigration after Brexit The new points-based system,”
2020.
https://www.nortonrosefulbright.com/en/knowledge/publications/2fd4c32b/immigratio
n-after-brexit.
[5]
The Guardian, “UK real wages rise, but drop in EU workers could hurt NHS – as it
happened,” 2018.
[6]
PWC, “Brexit – A key role for HR People and organisation issues to consider
following the EU referendum,” 2016. https://www.pwc.co.uk/eu-referendum/posummary-of-brexit-and-hr-related-issues-september-2016.pdf.
IMPACT OF BREXIT ON MIGRANT WORKERS
[7]
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BBC, “Brexit: What you need to know about the UK leaving the EU,” 2020.
https://www.bbc.com/news/uk-politics-32810887.
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