The post-Brexit UK economy is facing a shortfall of more than 300,000 workers as the result of ending free movement of labour with the EU, according to a new estimate by leading researchers, Report informs via the Financial Times.
The joint assessment from the UK in a Changing Europe and the Centre for European Reform think-tanks said that the ending of free movement was constricting the UK economy and “contributing significantly” to labour shortages in lower-skilled sectors, including logistics, construction and hospitality.
Jonathan Portes, professor of economics and public policy at King’s College, London, who co-authored the report, said the shift in migration patterns was “a feature, not a bug”. “The longer-term impact on the UK labour market will be profound,” he added.
After the UK left the EU it shifted to a points-based immigration system that allows skilled workers earning more than £25,600 per year or £10.10 per hour to obtain work visas, but the research found the system was “not liberal enough” to compensate for the loss of EU workers.