How Will Brexit Impact the IT Staffing Market?
The UK just voted to leave the European Union. Even though no steps have been taken yet, the impact has already been felt in worldwide markets and in the sinking value of the GBP against other currencies. There’s some talk that a second referendum might be held to confirm the first vote. Still, it’s important to understand how Brexit could change the game for companies that need to hire technical talent.
Brexit Could Decrease IT Employment in the UK
Richard Branson reported that his company, Virgin Atlantic, just terminated a business deal that would have created 3,000 new jobs. He said that he remains hopeful that the country can hold a second referendum. Now that many UK voters can already feel the impact on the economy of this decision, he believes that many will change their votes. Right now, uncertainty about the future has caused most of the issues associated with the vote.
One reason that international companies liked to place people in the UK is because they gained access to the entire EU. If the UK actually does leave the EU, this benefit could be lost. That mean that other companies could reduce their staff in that country and relocate those jobs to other countries. Even British firms might consider moving their offices to EU countries in order to facilitate trade and free movement.
While Brexit could have a negative impact on employment in the UK, it could also help companies in the United States and other European countries attract British IT staff. For example, US News already reported on an increase in the number of international job searches by UK workers. A devalued GBP could also make overseas salaries more attractive to tech talent.
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