Brexit Job Losses – In Summary
This is adapted from the data base maintained by The ‘Brexit Job Losses’ Facebook page. Please refer to this if you have questions about validity.
IMPORTANT NOTES ON METHODOLOGY:
Job losses are attributed to Brexit if they meet one or more of the following conditions:
- The employer’s business has been significantly affected by sterling’s devaluation, either immediately through rises in the cost of imported inputs or later by inflation passed on by those who were so affected.
- Government austerity cuts are attributed to Brexit since Britain voted to remain the EU, austerity would have been lifted instead of deepened.
- Barring other obvious explanations businesses that were doing okay but experienced a significant slowdown after the Brexit vote are deemed to have been impacted by Brexit.
- Businesses and other enterprises (e.g. EU regulatory authorities) that will be impacted by the imposition of trading or regulatory barriers (including the potential imposition of tariffs).
- All jobs moved abroad are considered Brexit-related even if offshored outside the EU, since Brexit makes Britain a “third country” to the EU, just like India or China.
Other factors are occasionally cited but these are the main categories.
Job losses due to changes in the way business is conducted, such as those due to banking automation or to internet shopping, are usually excluded unless there is some compelling reason to regard Brexit is the real reason for cutting staff.
So lets be straight: to date, industries either moving, considering moving, reducing capacity, or shutting up shop due to Brexit uncertainty and rising costs due to the weak £, now stands at;
- Car factories: At risk 2.7 million workers;
- Financial services: At risk 2.19 million workers;
- Component factories in aerospace and car tech;
- Games tech companies, 40% of which are considering moving to the EU;
- Restaurants & hotels – Jamie’s, Prezzo, Strada, Chimichanga – as people start to tighten their belts, middle range eateries suffer: 4.49 million workers in hospitality;
- Retailers (ToysRus, Maplin – gone already; New Look, House of Fraser, Debenhams, Homebase, Marks & Spencer – restructuring, Next and JLP issuing profit warnings); with many others showing significant drops in profit or issuing profit warnings, not to mention struggling independents, all struggling to cope with the falling pound: 2.6 million workers in retail;
- 46% of EU companies with a UK base will be reducing UK capacity. 15% will remove all operations to the EU, 28% will move a significant proportion, & 29% will move smaller parts of their operation.
Thats a total of over 12 millions workers in these industries.
If you want to see these numbers in detail: Brexit Job Losses to March 2018 – In More Detail
Links to other sections of Ditch Brexit