Jobs hold fast in shadow of Brexit…for now

John Springford, director of research at the Centre for European Reform, explained that the economic slowdown and job losses have been less dramatic than predicted, as British consumers have kept spending on the back of their savings.

In addition, he noted that Britain’s labour market has proven to be “extremely flexible”, pointing to an unemployment rate that remained under 8% during the 2007-2008 financial crisis...

...Unless both sides fail to seal a deal on the Brexit divorce and a new relationship, CER’s Springford said that the job market will remain stable. While in the short term there could be some relocation, in particular in the financial sector, in the long run the effect will be increased competition. This will push up production and wages could be slashed.

In addition, as savings continue to fall to historic low levels and inflation rises, Springford also warned that private consumption would no longer be the lifeline of the British economy.