Monday, 21 August 2017

Brexit and the skills challenge

Sandra McNally, CVER's Director, on skills in the UK in light of Brexit

The UK’s productivity suffered a shock in 2008 from which it has not recovered, and the ‘skills problem’ needs to be addressed. Within the context of a broader industrial strategy, improving skills is part of the solution – but Brexit may well harm these efforts if the feared negative economic effects put additional pressure on public finances.

Likewise, Brexit will not help if prolonged uncertainty discourages employer investment in skills; nor if employers substitute capital for labour as a response to migration barriers. However, Brexit does do is bring the skills problem into sharper focus.