According to a warning issued by the head of Britain’s biggest business lobby group, UK companies could go bust and there could be significant job losses throughout the country because of the planned crackdown on immigration after Brexit as being planned by UK Prime Minister Theresa May.
There can be a host of unintended consequences by the plan of the British government to implement policies with the aim of reducing low-skilled immigration into the country according to May’s plan, warned Carolyn Fairbairn, the director general of the Confederation of British Industries (CBI), adding that the prime minister should refrain from the use of “derogatory terms” related to the EU migrants who are already working in the UK.
In an interview, she told The House magazine that in case greater controls were implemented overnight, “[The UK could see] businesses go under and we would lose jobs rather than create jobs for our population.”
These comments were made in reference to a speech by May last month addressed to the CBI where she issued a warning that following the imposition of Brexit, it would no longer be possible for EU migrants to “jump the queue” and enter into Britain to work.
There were some serious concerns among business leaders about the tone and rhetoric of May’s speech, Fairbairn said and added that the there is a possible underestimation of the enormity of the possible shock that such a measure would ring to the British economy. “Some have equated it to the oil price shock of the 1970s,” she said.
Since the Brexit vote, there is a rising trend of lower number of EU migrants coming into Britain which has reportedly cause some serious problems already for British companies. The level of net EU migration to the UK has reached its lowest level for the last six years.
There had been a continued drop in November in the overall availability of staff, according to the Recruitment & Employment Confederation and the latest figures by the accountancy firm KPMG based on the most recent numbers from the labour market in the UK
According to the latest employment barometer monitored by the Recruitment & Employment Confederation, the steepest fall in permanent candidates available for work of four English regions was registered by the Midlands along with significant reduction in some of the other parts of the country as well.
Workers have been given more bargaining power resulting in greater demand for increased pay because of the rate of unemployment dropping to the lowest levels since the mid-1970s in the country.
Skill shortages throughout the UK had cause a rise in the pay for temporary workers last month at a rate that is the fastest in more than a decade according to a survey of 400 UK recruitment and employment consultants.
After a “lost decade” for pay since the financial crisis, these figures suggest that pay growth has finally begun to emerge for workers. However, real wages that account for inflation in its figures are still quite some way behind pre-crisis peak.
(Adapted from TheGuardian.com)