An article on PressTV has just surfaced claiming the UK labour market is in ‘free fall’ after Brexit. Some truth in that? Maybe, but a minuet amount if that.
The UK banking system is the one in ‘free fall’ actually, which is having an impact unemployment. Brexit is simply the smoke screen being used to cover the fact that the UK bank profits have been taking a battering for some time now. The Brexit vote just came at the wrong time.
The article does not actually go in to any detail about which industries are seeing the labour ‘free fall’ – but did say
“Economic turbulence following the vote to leave the EU is undoubtedly the root cause”,
…which we believe to be complete misinformation.
If you look at the banking chart we posted last week, banking profits are way down. The banks are not lending enough money to keep their profits consistent which impacts business confidence. Companies simply do not like to recruit new staff when they have no idea what will happen around the corner. So, they panic and freeze permanent employment and opt for contract / part time staff. This is where the so called ‘free fall’ is being felt – the permanent jobs market.
What they don’t tell you is that for every one permanent job frozen, 1.7 part time / contract roles are created. Granted, the part time roles are paying much less than a permanent position would, but they are still jobs.
Business owners are just being cautious at the moment. We wish media outlets would stop scaremongering readers in to thinking Brexit is the cause of everything negative. When you look closer, Brexit has nothing to do with employment market – but the banks do!