Fear is now the pervading emotion related to the Brexit negotiations. Citing latest research evidence, MSN reports that over half of skilled EU workers employed by FTSE 250 companies are likely to leave the UK before Brexit – this underscores fears that the country is at risk of a severe brain drain following its departure from the bloc.
There are three possible consequences from the exodus.
Firstly, firms will aggressively compete for available skilled labour, pushing up pay rates, and triggering cost-push inflation. This will be on top of higher costs off imports because of Sterling’s depreciation
Secondly, jobs will get off-shored
Thirdly, the firms will cut output, triggering a collapse in delivery of UK goods and services – this could lead to depression
The politicians and the mainstream media have fanned the fear.
Of course, it will now take more than counter-vailing force to reverse the trend. Let’s hope that May and her Brexit triumvarite (Davis, Foand Johnson) can produce the rabbit out of the hat.