IS SHOCK EU REFERENDUM RESULT GOOD OR BAD NEWS FOR YOUNG WORKERS?
In case you missed it (!), the British public has just voted to leave the European Union (EU). On Friday it was announced that 52% of those who voted wished to leave (‘Brexit’), while only 48% wished to remain. But what does Brexit mean for graduate jobs?
Before the referendum, we saw some thought-provoking debate on Graduate Fog, with several young readers saying they planned to vote Leave (‘Brexit’). Given the much-repeated statement that young people were more likely to vote to Remain, this was perhaps surprising. But you had your reasons – namely, hoping that fewer job seekers could mean less competition for graduate jobs, and the prospect that employers could be forced to raise salaries to attract the best applicants.
Many of you also said you hoped a Brexit would cause house prices to drop, helping you to get your foot on the ladder. You seemed unconvinced by the case to stay in the EU, saying you weren’t feeling any of the supposed benefits that Remain campaigners based their arguments on.
However, many experts said they feared a Brexit result would be bad news for young job seekers, as it would be unlikely to reduce competition for jobs. In fact, competition for jobs could even get worse, if the economy tips back into recession or employers become nervous about the commitment and cost of hiring new staff, including graduates. As Mike Hill, CEO of graduate website Prospects, said:
“Cross border collaboration is essential for both higher education and business to thrive. Leaving the EU would be potentially disastrous for the graduate jobs market, both on a large multinational and more local SME level.
“For business, being part of the EU enables access to this market and through trade deals with developed and developing economies. There will be reduction in UK investment as people move to invest in continental Europe, particularly Ireland. As we saw in the last recession, the graduate labour market is particularly vulnerable to issues in the financial market, which we will see if Frankfurt takes over as Europe’s financial capital.”
And Frances O’Grady, TUC General Secretary, said:
“…if the UK votes to leave the European Union, the knock-on impact to the economy would mean even fewer decent jobs for graduates.”
Now that the dust is beginning to settle, we’re interested to know how you feel about the EU referendum result. Those who voted to Leave, are you pleased with the result, or are you suffering from so-called ‘Regrexit‘? And what are your thoughts if you voted to Remain? Please share your views below – thank you!