According to distinct reports, citizens of the U.K. may have opted for Brexit but now must brace themselves for economic slowdown, reduced number of jobs, curtailed pay-hikes, and overall a significant fall in the living standards.
Unemployment Rate Anticipated to Reach 5.8% by 2019
As per the projections offered by the EY Item Club, a forecasting group, the U.K. had been experiencing a consistently improving employment rate in the past decade, standing at manageable 4.7% in 2017. But in 2018, as a result of impending Brexit, the unemployment rate is expected to reach 5.4% and escalate up to 5.8% by 2019. Moreover, a number of firms have made up their mind to maximize pay rise to merely 1% over the course of next one year, which is quite a nosedive in comparison to the rate of inflation at 2.3%, and increasing.
Another study from HR Specialists, a recruitment agency that surveyed more than 1,000 employers, concluded that pay expectations are now at the weakest mark since the start of 2014. As Brexit is installed and drop in basic pay grows apparent, U.K. workers will have to manage with not-so-luxurious life they have been accustomed to. That being said, the sectors such as production and manufacturing will continue to exhibit healthy employment, as per a labor market adviser at the CIPD.
Airfares, Petrol, and Hotels & Restaurants Expected to Get Expensive
According to a Scotiabank economist, Alan Clark, U.K. citizens will have to limit their utilities bills, spend cautiously on petrol, and eat out less often in the coming months in order to handle the inflation as a result of falling value of pound. On the other hand, several forecasters including some from the Bank of England expect wage growth to revert back to nearly 4% again inside a year and half.