Implications of UK leaving E.U.

Introduction

            The United Kingdom has in over forty years been one among many other affiliates of the European Union. This has tremendously affected factors related to economic activities, socio-economic factors among the members of the union, and crucial political factors. Economic benefits include reduction of prices due to free trade and removal of barriers, social benefits include enhanced security through initiatives such as the European Arrest Warrant while the political benefits include the harmony and coming together of these member countries thus leading to peaceful coexistence (Blogger, 2016). However, the step of leaving the Union by the United Kingdom will have its effects be it positive or negative. Brexit led to anxieties among the citizens as some were working in the member countries. This paper aims to explore the implications on employment in the United Kingdom, for the latter leaving the union.

Implication of the Movement of labour

             In the past, the affiliate countries of the Union had allowed the import or exportation of labour among the member countries, and this saw citizens migrate from one country to another in search of jobs where they were available (Begg and Mushövel, 2016). If the United Kingdom takes the step of leaving the union, then it means that its citizens will be restricted from moving among the member countries in search of jobs. More to that this step may see the deportation of people working in other countries back to their home country where there may not be enough job market to cater for the available labour.

 If this happens, the United Kingdom will not be able to provide job opportunities for its people since the available labour greatly surpasses the current demand for labour in the U.K. market. This will mostly affect the people working in other countries of the Union and the citizens working in the United Kingdom might be spared (Begg and Mushövel, 2016,). Unless the United Kingdom creates more jobs in the market by exploring rising business opportunities and investing in new projects that will create jobs, then a lot of people will be rendered jobless.

On the other hand, foreign labour belonging to the member countries of the European Union will be forced to go back to their country of origin in the same way UK citizens will be compelled to do. This would imply that there would be more jobs for the people who remained in Britain. The people who will be deployed back to their home countries may opt to be self-employed by participating in activities that generate income without relying on jobs that exist in the market.

Implication to employers

            The exit of the UK from the EU will result in changes in policies concerning employment. There will be reduced regulation which will also be determined by factors like whether the U.K. will go away with free movement rules which provided the European Economic Area workers who provided labor supply (Begg and Mushövel, 2016). If the UK does go away with the latter, it will reduce the supply of labour, so the employers will be forced to make jobs more attractive through initiatives such as improving the welfare of the workers and raising their pay to be able to remain aggressive in the field of business. Competition within the public and private sectors will lead to the upgrading of goods being produced and the services offered.

Opportunities arising from the exit

             Being a member of the European Union limited Britain from exploring the available possibilities in the non-European member countries. Exiting from the union will enable Britain to explore and exploit the existing and arising opportunities as there will not be any rules or barriers restricting this from happening (Broughton et al., 2016). This will attract investment from foreign countries which will lead to the creation of job opportunities.

  Being a member of the Union, the member federations are required to make contributions that will facilitate the activities of the union. In most cases, these contributions involve large amounts of money (Broughton et al., 2016). The United Kingdom will not be obliged to make contributions to the union, and this will reduce its budget's expenditure, and these funds can be diverted to other uses such as investing in the expansion of industries and other activities that lead to the overall job creation.

Conclusion

            Conclusively, the mobility of factors of production will be reduced in the member federations of the European Union, but on the other hand, there will be more flexibility due to the abandoning of restrictive barriers which will allow the movement of factors like labor and capital to the non-member countries. This will be to exploit new opportunities coming up due to the partnership of the latter.

References

Broughton, N., Keohane, N. and Ketola, T., 2016. Working Together?. Working Together? The impact of the EU referendum on UK employers. [Online].

Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of Brexit for UK trade and living standards. [Online].

Ottaviano, G.I.P., Pessoa, J.P., Sampson, T. and Van Reenen, J., 2014. Brexit or Fixit? The trade and welfare effects of leaving the European Union. [Online].

Swidlicki, P., Ruparel, R., Booth, S., Howarth, C. and Persson, M., 2015. What if...? The Consequences, Challenges & Opportunities Facing Britain Outside EU. London: Open Europe.