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It was the vote that rocked the nation, but as the majority of Britain decided their country would be better off leaving the EU, fears and rumours surrounded the country about just what would happen once we severed our ties with the rest of Europe. One of the main issues up for debate was of course unemployment, an issue that has plagued Britain for decades , with many feeling that a Brexit would worsen the rate of employment, with experts predicting that employment would fall by about 9,500 after the results were announced. It seems that in true British fashion, its people have done their best to prove the predictors of their fate as wrong, and employment levels have in fact risen in the past few months. The results have been determined by the drop in claimants for the unemployment benefit Jobseeker’s Allowance with the claimant count falling to 763, 600, which is a huge 8, 600 in July and is the first monthly drop since February 2016.
It seems that UK unemployment has never been higher as for the past three months the average employment rate has stayed steady at 4.9% with the average weekly earnings rising by 2.3%, and imporvement on the previous 2.2%. The number of people not in work but actively seeking employment has emerged as 1.64 million which is the lowest it has been since March – May 2008, maybe Brexit wasn’t such a bad idea after all. Could it be argued that the fear for our economy after Britain left the EU has scared people into seeking employment? The huge rise in employment rate for 16-64 year olds is explained by the fact Britain has now left the EU, with the 74.5% employment rating being the highest it has been since 1971. It seems that speculation of a failing economy and a jobless Britain was nothing but that, speculation, as Britain thrives in its new (and improved?) environment. With two unfavourable factors that were predicted top come with a Brexit, proved wrong, could this mean that Britain isn’t in for as rough a ride as people first thought?!
Not over yet
Maybe not. UK economists are warning that we are not out of hot water just yet. The risk that Brexit poses to the economy, and the chances that investments will freeze means that employers are putting hiring on the back burner, meaning there are in fact going to be less jobs available in the upcoming quarter. Whilst some might opt to put a few hiring decisions on hold, some will completely stop headcount altogether. If there are no businesses to hire employees, then there are fears that this great rise in employment will soon come crashing back down. As much as it is important for workers to keep and find jobs, it is also understandably important that business owners take everything into consideration, including the rising annual wage prices which could have a huge effect if the post-Brexit economy is damaged yet businesses still decide to take on more employees.
Conclusively, as time goes on, it is becoming apparent that the bomb that David Cameron had warned was under the economy hasn’t exploded as expected as Britain are seeing little if any effects of a failing economy as of yet. Now we wait to see if it will appear.