Human Resources MagazineHuman Resources Magazine

    Subscribe to Updates

    Get the latest Human Resources news and updates from around the world.

    What's Hot

    Ethnicity pay gap persists regardless of high company pay levels

    August 10, 2022

    Tip for tat: hotel company offers tattoo incentives to workers

    August 10, 2022

    Catch up: Where do you draw the line with social media screening?

    August 10, 2022
    Facebook Twitter Instagram
    • Advertise
    • Privacy Policy
    • Terms
    • Contact
    Facebook Twitter Instagram
    Thursday, August 11
    Human Resources MagazineHuman Resources Magazine
    Demo
    • Home
    • News
    • Boardroom
    • HR Careers
    • Leadership
    • Human Capital
    • Recruitment
    • HR Software
    • Culture
    • Tech
    Human Resources MagazineHuman Resources Magazine
    Home » Brexit trade agreement to impact wages and productivity
    News

    Brexit trade agreement to impact wages and productivity

    June 23, 2022No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr
    Share
    Facebook Twitter LinkedIn Pinterest Email


    The new EU-UK Trade and Co-operation Agreement (TCA) brought about by Brexit will negatively impact wages and productivity, according to a report from the Resolution Foundation.

    The research suggested that the changes to trading rules, which officially came into effect in January 2021, will decrease real wages by 1.8% by 2030, amounting to a loss of £470 per worker a year on average

    Labour productivity is expected to fall by 1.3%, equal to more than a quarter of the last decade’s productivity growth. 


    Brexit impact in the UK:

    Five HR steps for managing Brexit compliance

    Brexit could jeopardise UK workers’ rights

    UK employment law after Brexit


    One of the reasons given for the loss is the number of barriers EU migrants now face when looking to work in the UK, as the report stated: “A less open UK is expected to be a poorer and less productive. Almost half of these impacts are driven by forgone EU integration, which makes the relative size of the barriers with the UK even larger for EU firms, who now face even smaller frictions within the EU.”

    David Wreford, partner at HR consultancy Mercer, however argued that Brexit is not the only cause for concern when it comes to talent.

    Speaking to HR magazine, he said: “Clearly there are issues for low earners, but the more important Brexit issue is to do with the workforce. Yes the pound has dropped and there are other issues associated with trade in Europe, but there are significant issues around the demographics of the workforce, the extent to which we’re now in a crisis driven by talent. Yes Brexit is a factor, but it’s more of a talent issue really.

    “For the first time ever, we don’t have enough people who are unemployed to fill the jobs that are vacant – that’s an extraordinary position to be in. As a result, that has been putting pressure on wages. What we’re seeing is higher wage inflation than companies are actually investing.”

    The study showed that businesses are investing less, yet Wreford suggested that some are focusing investments to improve wages for those on lower incomes.

    He said: “We are seeing some good behaviour with organisations that are focusing their efforts and investment on those who are less well paid than others.”

    An immediate side effect of Brexit was the devaluation of the pound, which contributed record inflation rates and an increased cost of living – both issues which were exacerbated by the pandemic.

    The Resolution Foundation’s Big Brexit report can be found here.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Articles

    Ethnicity pay gap persists regardless of high company pay levels

    August 10, 2022

    Tip for tat: hotel company offers tattoo incentives to workers

    August 10, 2022

    High-earner pay rises threaten inflation spiral

    August 9, 2022

    “Pushy” solicitor wins unfair dismissal tribunal

    August 9, 2022

    Economic instability prompts recruitment caution

    August 8, 2022

    More than a million key worker children to reach poverty in 2023

    August 5, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Don't Miss
    News

    Tip for tat: hotel company offers tattoo incentives to workers

    By Press RoomAugust 10, 2022

    Hotel chain Ruby Hotels has offered its employees money towards getting tattoos as an…

    Catch up: Where do you draw the line with social media screening?

    August 10, 2022

    High-earner pay rises threaten inflation spiral

    August 9, 2022

    “Pushy” solicitor wins unfair dismissal tribunal

    August 9, 2022

    Subscribe to Updates

    Get the latest Human Resources news and updates from around the world.

    Our Picks

    Too many businesses still hiding behind green PR

    August 9, 2022

    How to overcome post-pandemic HR sourcing challenges

    August 8, 2022

    How HR can prioritise procedure using automation and digital processes

    August 8, 2022

    Demand for fully remote roles spikes

    August 8, 2022
    About Us
    About Us

    Human Resources Magazine is a dedicated news portal about Human Resources and all that matters to emplyees and leaders in the business section.

    Our Picks

    Ethnicity pay gap persists regardless of high company pay levels

    August 10, 2022

    Tip for tat: hotel company offers tattoo incentives to workers

    August 10, 2022

    Catch up: Where do you draw the line with social media screening?

    August 10, 2022
    Trending Now

    What to expect from the UK’s four-day week trial

    June 6, 2022

    The key to empowered leadership

    July 1, 2022

    What you need to know before buying global mobility technology

    March 28, 2022
    Facebook Twitter Instagram Pinterest
    • Home
    • Privacy Policy
    • Terms and Conditions
    • Contact
    © 2022 Human Resources Magazine. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.