Brexit Affect Financial Sector Jobs
How Will Brexit Affect Financial Sector Jobs?
The Brexit referendum in June 2016 was undoubtedly a shock to the global community, as it meant that Britain would be leaving the EU after having been a member for 43 years. This is forecasted to have major economic consequences for Britain, and most economists are gloomy about the country’s prospects in the future.
The financial sector is one which is likely to be majorly affected by the economic changes which Britain is likely to experience. Here are some of the ways it may affect financial sector jobs.
Many companies, including Microsoft, HSBC and UBS, have been vocal about the fact that they will cease many of their operations in Britain once it leaves the EU, as it will be a far less profitable country to invest in. This is bad news for workers in the financial sector, as it could mean there are less jobs available overall.
If the economy does perform poorly, then many of the smaller financial companies, especially startups, could face collapse as their funding dries up and consumer spending plummets. Employers are also likely to be hesitant to employ new people in the run up to and after Brexit, due to the major economic uncertainty the country faces.
The reality is that many British financial sector jobs may be shifted to European cities, leaving many workers wishing to find a job in the financial sector facing the prospect of having to move overseas to find work (if they can).
For some European cities, though, Brexit could well spell good news, as new jobs may be created as a result. In Frankfurt, for instance, it has been predicted that 80,000 jobs will be created from companies moving out of Britain and into the financial hub.
It will undoubtedly be an uphill struggle for Britain to find skilled workers from the EU once its borders become closed to European nationals. In the financial sector, specialist recruiters may well be used by companies more extensively in order to find people with the right skills for various specialist job areas (such as wealth management and financial crime and fraud).
In essence, employers may have a much smaller pool of people to choose from, and may be more selective as a result. This could further encourage them to move out of the UK, as it could prove easier finding the right workers in the larger European bloc.
Since Brexit could seriously stifle many British companies’ ability to invest in growing their enterprise, it may be the case that they simply cannot afford to expand and take on more workers. Whilst those investing in the forex market may benefit from increased volatility and further investment opportunities as a result, business across Britain may find it incredibly hard to find solid, long term investment opportunities without taking fairly substantial risks.
Outside investment could also be hard to come by, as investors may be cautious about the future viability of the companies which seek their investment.
Ultimately, Brexit certainly poses a threat to a number of job categories in the financial sector, but the future, at least at this stage, is incredibly uncertain. If one thing is certain, though, it is that workers in the British financial sector face a nervous wait as details of Brexit and its economic impact become clearer in the run up to the exit date.