Brexit is undoubtedly one of the most controversial and unprecedented events to have occurred in Britain. With major effects on the economy forecasted, and a great deal of uncertainty surrounding the future of Britain’s relationship with the EU, many businesses are understandably worried about their prospects.
The financial sector in particular is in the firing line, as many companies operating within the industry are at risk from a volatile and unpredictable economy.
Economic Uncertainty
One of the major threats to the financial sector as well as most other sectors in Britain is the economic uncertainty created by Brexit. With many firms now unsure as to how they will operate in a post-Brexit world, it is likely that there will be less willing to employ new staff until the Brexit mist clears.
This could reduce the number of workers able to find a job in the sector, as well as leading to a decline in the actual number of financial sector businesses setting up in the country. As the negotiations, which are currently ongoing, continue to progress, the details released may well help to alleviate this problem as a clearer picture of Britain post-Brexit is painted.
Companies Leaving Britain
Another major concern in the financial sector is that large companies and institutions like banks have said they will move their operations abroad due to the complications Brexit will create. This will pose a significant threat to jobs, as there will be a reduced number of positions for people in Britain, with many having to move abroad to work in their desired field.
It is predicted that 80,000 jobs will be created in Frankfurt thanks to Brexit, and there could well be more news like this to come further down the line. This goes to show the level of impact Brexit may have on financial sector jobs, and presents a worrying future for employment in this sector.
British Pound
There is a good chance that the pound’s value will come crashing down once Brexit is finalised and completed in 2019. Those companies which deal with businesses overseas, as well as those trading forex with brokers like LCG, will be on the lookout for fluctuations in the currency’s value, and will have to prepare for its potential weakness come Brexit.
Immigration
Another major factor to consider is changes to immigration laws which are bound to come in as part of the Brexit package. With fewer workers from the EU able to enter the country, it seems highly likely that many skilled financial sector workers will be unable to find a job in Britain.
This problem will be exacerbated if companies move out of Britain, so it could be the case that the financial sector becomes less and less populated with skilled workers as positions abroad become a far more viable option for many.
Ultimately, it seems the outlook is fairly gloomy for financial sector jobs in the future. Whilst it is impossible to say what the exact effects of Brexit may be on the economy in the long run, the rampant uncertainty is making it extremely difficult for financial companies advance their trade and plan ahead for the future.
