Will the UK be the Overall Loser in the Brexit Deal?

Statistics are not in favor of Britain. Since Brexit referendum, number of foreign tech job applicants has gone down by a whopping 50 percent. Brexit has led to a brain drain of tech sector employees from the UK. A recent research by Hired, a career website shows that applicants are now cautious about working in Britain. The total pool of job candidates in the tech sector’s who accepted offers from UK companies have halved. This means that half as many candidates as now interested in working in UK after EU referendum in June 2016.

Brexit Torn Flag

Worries for the UK Tech Sector on Brexit Deal

 

The UK tech sector is heavily dependent on foreign candidates. Both the EU and the rest of the world fulfill UK’s tech candidate demand. With a lesser number of people preferring UK for jobs, the industry could land in hot waters. Tech firms are already facing shortage of skilled employees and with more talent fleeing from Britain, they could be in fresh trouble.

So why can’t UK hire locals instead? The reason is the supply gap. In fact, UK companies are not opting for foreign applicants for getting cheaper labor. Instead, they are offering 28 percent more salaries to foreign employees than their local workforce. These firms are looking for highly skilled talents that could fulfill their vacant posts and help them grow. If applicants reject UK- based firms’ offers, there will be an acute shortage of talent.

British employers are also cautious about sending applications to foreign talent as they are anxious about falling numbers. The Hired research shows that employers sent 30 percent lesser initial offers to foreign candidates than a year earlier. The British tech industry is standing at crossroads and as Hired puts it, the path is ‘suddenly less clear’.

Will Companies Shift Jobs to Europe?

 

British businesses are preparing themselves for a hard Brexit deal. In the midst of the storm, Jes Staley, Barclays CEO, has said that he doesn’t see a reason to shift jobs to Europe. He even said that Brexit was a ‘wholly manageable challenge’. Staley said that the bank has many other challenges to face and Brexit is very straightforward and less costly than its other issues.

His words contrast with his peers. JP Morgan, Deutsche Bank and Goldman Sachs have found renewed interest in Europe. They have already pointed towards moving bankers to prominent European cities like Frankfurt, Madrid, Paris, and Luxembourg.