Just after the Brexit vote in July 2016, there was a lot of uncertainty on what the decision will do to the UK economy. This recent volatility has only been highlighted by the recent snap election, Theresa May is being called to resign after Conservatives almost lost out to Labour. This leaves the UK in even more instability ahead of Brexit talks which began this week.
Max Lami, CEO of Oppenheimer Europe, was recently quoted in the Telegraph explains. “With the result as tight as it could have possibly been and weeks, months or even years of uncertainty ahead, we can expect instability and volatility in the markets.”
What Do The Election Results Really Mean For Sectors Which Are Predicted To Be Hit The Hardest By Brexit?
When Brexit talks began, researchers assessed which sectors would be most affected by the decision to leave the EU and the consequent elimination of free movement of people amongst members of the Union.
Sectors that were seen at the most risk were those in the manufacturing, agriculture, and domestic service industries. Recent statistics show that 30 percent of all workers involved in the food manufacturing industry are non-UK EU citizens.
Almost a quarter of domestic personnel, such as housekeepers or carers, and one-fifth of those in the accommodation sector, such as hotels or other tourist industries, are from the EU.
Leaving Europe means uncertain futures for those workers, and a change in policy regarding employment or immigration could mean a massive displace of talent and personnel.
However, the new election and the prospect of a softer Brexit, coming from the now stronger Labour party position, has brought a renewed possible future for those sectors which were going to be most affected by the elimination of the free movement of people.
What’s Next For Britain?
Whilst the future is, once again, uncertain, there seems to be a possibility that Brexit negotiations will now head in a softer direction.
“If it becomes an offshore center in a hard Brexit, wealth management could be an interesting business. Or it could be a soft Brexit, which would add more complexity” Max Lami said.
Theresa May previously warned that the status of EU migrants was up for negotiation, but did not guarantee that those already in the EU would have the right to stay and work indefinitely.
The UK elections have brought renewed hope for European citizens working in the UK and the sectors so dependent on them.
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