Assignment
1
, Task 1: UK Labour Market
UK labour market has been greatly affected by a number of factors of which Brexit is one of
the most important one. The decision of UK to leave from EU (European Union) in June
2016 has created great uncertainty in the UK employment market in terms of varying
inflation rates, exchange rates and the interest rates. According to Sky news (2018), the
inflation rates in UK have greatly fluctuated over the past 10 years between 2.0 and 5.0 with
the current value being 2.4%. The steady rate of inflation at 2.4% made the increase in the
interest rates by Bank of England as a great doubt in the UK market. The fall in the sterling
value after Brexit (Inman, 2018) also affected the exchange rates that are used by the
existing companies in UK. As a result of all these uncertainties created in UK market, the UK
economy has been greatly affected facing slow growth after the decision of Brexit. All these
uncertainties created by Brexit have created a great impact on the way employers recruit
the workforce and also the number of workforce being recruited over the past few years. An
example of this trend in the fall of the number of people being recruited after Brexit is the
increase in employers’ vacancies available for graduates by 3.6% in the year 2018
(Highfliers, 2018). Even though top employers in UK have decided to recruit 22,000
number of new graduates in the year 2017 (which is 10% higher than the number of
graduates recruited in the year 2016), this number has decreased as a result of the
uncertainties that are created and affected the UK employment market post Brexit
(Highfliers, 2018). Instead of spending more on recruiting and training the newly skilled
workforce having no experience, companies started to rely on the existing experienced
workforce and training them.
The average age to exit from UK labour market has increased from 64.1 to 65.1 years for
Males and 61 to 63.6 years for females between the time period 2000 and 2017 (ONS,
2018). This increase in the exit age of employees in UK made the contemporary
organisations to rely on the existing talent workforce to a greater extent by training them
till they are voluntarily willing to leave the organisation. High supportive UK regulations to
set up a own business in UK and huge technological developments like rise in internet users
have resulted in a great increase in the number of self-employed people in the UK (CIPD,
2018). As a result of this increase, the productivity level by UK businesses can be reduced in
2
1
, Task 1: UK Labour Market
UK labour market has been greatly affected by a number of factors of which Brexit is one of
the most important one. The decision of UK to leave from EU (European Union) in June
2016 has created great uncertainty in the UK employment market in terms of varying
inflation rates, exchange rates and the interest rates. According to Sky news (2018), the
inflation rates in UK have greatly fluctuated over the past 10 years between 2.0 and 5.0 with
the current value being 2.4%. The steady rate of inflation at 2.4% made the increase in the
interest rates by Bank of England as a great doubt in the UK market. The fall in the sterling
value after Brexit (Inman, 2018) also affected the exchange rates that are used by the
existing companies in UK. As a result of all these uncertainties created in UK market, the UK
economy has been greatly affected facing slow growth after the decision of Brexit. All these
uncertainties created by Brexit have created a great impact on the way employers recruit
the workforce and also the number of workforce being recruited over the past few years. An
example of this trend in the fall of the number of people being recruited after Brexit is the
increase in employers’ vacancies available for graduates by 3.6% in the year 2018
(Highfliers, 2018). Even though top employers in UK have decided to recruit 22,000
number of new graduates in the year 2017 (which is 10% higher than the number of
graduates recruited in the year 2016), this number has decreased as a result of the
uncertainties that are created and affected the UK employment market post Brexit
(Highfliers, 2018). Instead of spending more on recruiting and training the newly skilled
workforce having no experience, companies started to rely on the existing experienced
workforce and training them.
The average age to exit from UK labour market has increased from 64.1 to 65.1 years for
Males and 61 to 63.6 years for females between the time period 2000 and 2017 (ONS,
2018). This increase in the exit age of employees in UK made the contemporary
organisations to rely on the existing talent workforce to a greater extent by training them
till they are voluntarily willing to leave the organisation. High supportive UK regulations to
set up a own business in UK and huge technological developments like rise in internet users
have resulted in a great increase in the number of self-employed people in the UK (CIPD,
2018). As a result of this increase, the productivity level by UK businesses can be reduced in
2
