28 July 2016 by Amy Lewis
Despite new Prime Minister Theresa May’s appointment of David Davis to the new Cabinet position of ‘Brexit Secretary’, the post-Brexit fallout is still an unknown quantity.
While GlaxoSmithKline has announced it will invest £275m to expand its UK manufacturing sites, saying the country remains "an attractive location" despite Brexit, other firms, such as Vodafone has warned that it could move its head office from the UK if negotiations for a post-Brexit Britain do not result in freedom of movement for people, capital and goods.
More recently, Lloyds Bank has announced that it will be axing 3000 jobs and closing 200 branches as it expects to see a "deceleration of growth" following the UK's decision to leave the EU.
From a recruitment point of view, it is understandable that employers will be concerned about the access to the talent they need from abroad to fill certain skill shortages gaps, so this in the long-term could have an impact on the country’s economic growth. And new legislation and curtailed freedom of movement will also undoubtedly have an impact on the sector.
In what will remain a topical issue for months to come, our Co-Owner Spencer Symmons has been commenting in Recruiter on the impact for Wales given EU funding has helped create 37,000 jobs and 12,000 enterprises.
He said: “Wales has truly benefited greatly from EU funding – and we receive £245m more in annual funding than we pay in – so the immediate concern is if this level of funding will continue via Westminster after 2020 when Wales will no longer be eligible for EU funds.
“The majority of recruitment company owners, like us, were against a Brexit. Sadly, 53% of Wales voted to leave.
“The challenge, or more so the duty, for recruitment companies like us is to promote a message of positivity – internally and externally. Markets have stabilised but the true impact of Brexit in Wales is currently unknown.
“We are a country heavy on manufacturing, pharma and construction, which may all suffer in the short to medium-term but the overriding message from us at CPS is that we will prevail due to our spread of clients and the uber-niche markets in which we recruit.”
Working across four continents, we source and supply permanent and interim staff for the IT, ERP and Engineering sectors.
By thoroughly understanding what our clients need and by uncovering the best candidates, we place in excess of 1000 candidates a year into jobs with an end client base ranging from SMEs to global PLCs and FTSE organisations.
If any businesses or candidates have queries on the impact of Brexit on their recruitment strategies, please get in touch.
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