Will Brexit cause wide-spread job losses? The CBI thinks so
CBI Director General Carolyn Fairbairn feels that a UK recession is “very likely” if Britain votes to leave the EU, and she said that such a move could result in the loss of between 500,000 and 1 million jobs by 2020. Of particular concern to Fairbairn is the prospect of widespread Brexit-triggered job losses among the younger working population largely due to a predicted downturn in UK investment by overseas companies outside the EU.
Job losses for young people
Stating that younger UK workers were “disproportionately affected” during the last economic downturn, Fairbairn said: “Employment rates barely changed [for] over 30s, but fell by 4% for under 30s. Real incomes fell two or three times as much for the under 30s. We have history here.”
Fairbairn says that the prospect of a Brexit made her “emotional” over its likely impact upon the country’s younger people, and research undertaken by the CBI in conjunction with PWC points to the prospect of a slump in apprenticeships and graduate openings.
Citing HM Treasury’s forecast of a Brexit-led recession, Fairbairn believes that a drop in overseas investment will end up leading the UK toward economic instability. Describing her vision of a “short-term shock to the economy”, she did add that Britain would likely “find its way” in the longer term. An employment agency in Cheltenham such as http://www.buzzrecruit.com/ can help people who wish to work find employment in the area regardless of how the big vote goes.
CBI’s overseas partners
CBI’s Commonwealth partners have also expressed some concerns over Brexit, with countries such as India, Canada and South Africa braced to reduce their investment if Britain does leave the EU. Fairbairn states: “What they have said to a man and a woman is that they would continue to make investments in the UK, but to a much lesser extent.”
Meanwhile, John Longworth, the chair of Vote Leaves’ business council, indicated that the greater risk is an unstable EU and the UK’s lack of power within the Eurozone.
Longworth added: “If we stay in the EU, we are heading for a low wage, low skill, low productivity economy in which any growth in GDP is shared among more and more people as living standards fall behind.”