Brexit: One Month Later
"Brexit" has become a very famous term lately. The exit of the United Kingdom from the European Union one month ago, has resulted in constant headlines regarding many issues from infrastructure to foreign investment. Many people are cautious about the current state of the UK economy.
Data from IHS Markit's Purchasing Managers' Index (PMI) shows a fall in July, reaching the lowest level since April 2009. Manufacturing and service sectors saw a decline in output and orders; however, exports picked up, driven by the weakening of the pound.
Complications and confusion are evidently growing industries. Even before the U.K.'s vote to leave the EU, Britain's tech companies and start-ups struggled to fill engineering jobs. After Brexit, early indicators show, it's likely to get harder.
Despite being relatively small compared to North American standards, the UK's tech industry employs 1.5 million people and is growing 32 percent faster than the national economy while creating jobs at nearly three times the average rate. The concerns that have arisen from the results of Brexit, are visa complications for prospective and current international employees.
The report Strange Days: London after the EU referendum was the result of a discussion of a panel of many industry experts, academics and researchers after the vote. A reminder that the city will be heavily affected because "Mainland Europe does not just supply London's waiters and construction workers, but also many of our bankers, architects, designers, and lawyers."
"Anecdotal evidence suggested international candidates were already turning down job offers because of uncertainty, and there was a real danger that current EU workers would begin to look for opportunities elsewhere, voting with their feet before Brexit negotiations have brought any clarity to the situation."
William Gard says in his article that "Mega projects that are well advanced such as Thames Tideway Tunnel and Crossrail are unlikely to be affected. Those further down the pipeline such as HS2 and Heathrow's third runway are more vulnerable to the less certain economic outlook and a hiatus while the new government gets to grips with the implications of Brexit and key departmental resources are reallocated to deal with EU exit negotiations."
There are possible early implications for the UK’s relationship with non-member states - the challenge will be making the most of these in the face of all the other challenges facing government. We know that things won't be official until at least 2 years into the future, but when the UK is actually out of the EU, hopefully things will be looking better.