A hard Brexit which would be tough on immigration is likely to boost wages in the United Kingdom but only temporarily before economic setback leads to lower wages across industries according to the research by the Resolution Foundation. The research analyzes the impact of migration on employment from 2004 to 2014. During this period, the share of the migrants in the population of the UK increased from 10 percent to 16 percent. The supply of low-skilled workers from EU accession countries such as Poland and Latvia had helped drive down the wages. Their average earnings are £2.76 per hour below that of natives.
So if migration is halted as a result of the Brexit vote, some sectors of the economy such as food manufacturing and clothing could see a rapid wage increases for the Britons. Almost one in three workers in these sectors is a migrant. Even sectors like health care, cleaners are likely to see increases in wages. However, these wage benefits are likely to dissipate over time as such an exit and tough stance towards migration would face retaliation from the EU and Britain is likely to fall to a much deeper recession and prolonged wage stagnation. Prolonged wage stagnation in other sectors of the economy would eventually lead to a much lower demand in these sectors and reduce wages.


Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Asian Currencies Stay Rangebound as Yen Firms on Intervention Talk
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions
Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out




