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Migrant workers fleeing from UK amid internal headwinds
24-08-2020 16:45
Migrant workers fleeing from UK amid internal headwinds
Migrant workers fleeing from UK amid internal headwinds

Hundreds of thousands of migrant workers are fleeing from the UK amid Brexit and the coronavirus crisis. Economists note that the number of foreign workers in the country is shrinking drastically.

Curiously enough, among migrant workers, European citizens prevail. They come to the UK for higher salaries but now they are forced to come back to the EU due to the worsening economic situation. According to the Office for National Statistics, the number of EU citizens working in the UK fell by 284,000 in the second quarter, notching the lowest level since 2015. The first wave of migrant workers ebbed away from the country at the very beginning of the pandemic. They feared that they would not be able to return home before the borders were closed. The higher number of migrants left the country after the lockdown measures. Notably, the UK employers are more and more unwilling to hire migrants amid the biggest drop in payrolls since the 1970s energy crisis. In addition, some industries usually occupied by foreign workers, e.g. the hotel business, are unable to pay wages. Over the past three months, hotel owners have been forced to lay off 137,000 foreign workers.

Besides, the uncertainty about the future relationship between the UK and the EU is also weighing on the country's economy. The UK officially left the European Union on January 31. Until the end of 2020, the parties agreed on a transition period. During this period, most of the EU laws will continue to be in force.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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