So on June 23 the British exit from the EU was decided. To quote the new British Prime Minister Theresa May, “Brexit means Brexit”, but as a UK journalist quickly pointed out – “what is Brexit? Nobody knows.”
Since the Brexit decision, it has been a very uncertain period for most Britons working abroad and also for many other Europeans working in Britain. Many are increasingly looking for answers on how Brexit will affect the recruitment industry in the UK and in the rest of European countries.
The effect of Brexit depends mostly on what actions the UK takes. By leaving the EU, businesses based in the UK may suffer from skills shortages and may find it a lot harder to access talent from overseas.
Everyone is hoping that the UK will negotiate an agreement with other EU countries for the free movement of workers
Currently, British businesses are able to employ candidates from European countries without need for work permits. The consequence of Brexit could mean that workers from other countries would no longer be free to travel to the UK for work and this may also be the case for UK citizens who would like to work in other EU countries.
The demand for candidates looking for jobs in the UK has been increasing year on year and businesses need assurance that they will be able to recruit talent from EU countries without the long process of work permits. There are few certainties at this point but one certainty is that there will be a continued period of uncertainty surrounding Brexit.
• Economic and financial uncertainty for businesses who are our clients, employers and the providers of job opportunities.
• Uncertainty for employees/job seekers who are UK citizens working or seeking work in EU countries until now without the need for work permits but who are destined to become non-EU citizens.
• Uncertainty for EU citizens working within the UK currently without the need for a work permit but with the UK soon to become a non-EU country.
Everyone is hoping that the UK will negotiate an agreement with other EU countries for the free movement of workers. If this agreement is done, the situation would pretty much remain the same. However, if this does not materialise, it would be more difficult for UK businesses to recruit and hire talent from EU countries.
As a result of the uncertainty about its future, some countries fear that UK-based job seekers will start looking at opportunities outside of the UK, in English-speaking countries but beyond the borders of the EU completely. On the other hand, with change and uncertainty comes opportunity.
• Opportunity for EU countries like Malta to attract new businesses that see the UK as less attractive thus creating increased job opportunities in Malta.
• Opportunity to provide Maltese candidates currently living and working in the UK with opportunities to return to the local job market.
• Opportunity to attract EU citizens with good English language skills, who were previously seeking employment in the UK, to see Malta as an exciting alternative.
• An opportunity to negotiate terms with the UK that will help to retain UK citizens currently living and working as part of the Maltese economy without having to resort to a lengthy and bureaucratic process for obtaining a work permit.
One thing is certain. Nothing will happen overnight. The negotiation will start this October and the UK has two years to figure out the exact terms of the nation’s departure from the EU.
This change will definitely bring with it multiple challenges and opportunities for the UK and the EU recruitment industry. Malta is well positioned to take advantage of this change. It is already an attractive place to do business and seen as a great place to live and work. The current job market in Malta is buoyant and Brexit may serve to further strengthen the market. Let’s hope so.
Mark Sims is managing consultant at Castille, a specialist recruitment brand in finance and tech.