Shortage of 330,000 workers in the country due to Brexit: is it bad for the economy?

The immigration restrictions in the United Kingdom, which were introduced after leaving the European Union, have led to a shortage of 330,000 workers in the country. Sectors with low-skilled labour, such as retail, hospitality, transport and storage, are particularly hard hit by the end of free movement of persons between the UK and the EU, reports the London-based think-tank Centre for European Reform (CER).

According to the economists of the think tank, the United Kingdom has lost about 1 percent of its workforce due to the impact of Brexit. Although the departure from the EU led to an increase of 130,000 workers from outside the EU, 460,000 fewer workers came from the EU due to the stricter immigration rules, the economists said.

“A combination of higher wages and prices and less production is likely, especially in work that is difficult to automate,” warn the CER economists.