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Almost half of all engineering firms expect Brexit to have a negative impact on the engineering talent pool, a new report reveals.
The worrying findings, published today by The Engineer, are based on a detailed survey of 332 individuals working in engineering and with direct responsibility for recruitment.
Respondents cite negative post-Brexit perceptions of the UK and an anticipated reduction in free movement as major areas of concern.
The findings are a major worry at a time when companies of all sizes and across all engineering sectors continue to report problems finding and recruiting the skilled staff that they need.
It was also found that a third of engineering firms expect Brexit to lead to a decrease in recruitment activity. This expectation is reasonably consistent across the different sectors, although optimism appears to be at its lowest in the rail sector, where 45 per cent of respondents expect to see a decline.
The biggest dip in recruitment activity is expected to be felt in the immediate term, but there is little expectation that recruitment levels will return to pre-Brexit levels any time soon.
Indeed, 32 per cent of respondents to the survey expect the situation to worsen with the triggering of article 50 – the means by which the UK begins the two-year process of leaving the EU.
An end to freedom of movement within the EU – one of the potential consequences of any Brexit negotiations – is seen as even more damaging, with 38.8 per cent expecting it to hit recruitment.
Other key findings:
- 16.4 per cent of engineering companies expect to see a recruitment freeze whilst 13 per cent report that a freeze is already in place.
- 21.2 per cent expect a pay freeze and 6.2 per cent say one is already in place.
Click here to read the report in full
Has your company’s recruitment activity – or indeed your own role – been affected in any way by June’s referendum result? Let us know in the comments box below.
An amazing interpretation of the report, which actually says 70% expect no impact or a positive impact on recruitment from Brexit. A similar amount say no change in pay policy. Stop with the Brexit scare tactics please.
Disapointing article from the Engineer, I would have thought you would have focused on the 60-70% of respondents that expected no change to the engineering labour market not the minority predicting doom and gloom.
If 30% of companies have problems that will be quite an economic blow. Worth focusing on I would have thought.
It’s also interesting that most companies I have talked to recently are more concerned about the cheap labor disappearing. Rates for engineers in the UK are still lower than other EU countries. Managers with no understanding of management are better paid than engineers with the appropriate skills.
With minimal focus on developing home grown engineering talent it’s no surprise that there’s a shortfall! extra effort now to bridge the gap. No short-cuts/quick fixes please; take responsibility, do it right, reap the rewards!
The company that I work for in this country (England) is Japanese owned with a strong German influence. We have a German director and HR Executive. The company is gradually being wound down. Also I have just been informed that my pension scheme is currently at a loss.
This is all down to the effects of Brexit.
Well done to the ‘Brexiters’. I stand to lose everything that I have worked for over the years.
To add insult to injury I have just listened to the muppet Damian Green announcing the great triumph that Brexit is proving to be.
Managers with no understanding of management are better paid than engineers with the appropriate skills.
Nice one! unfortunately this maxim can be applied to virtually all British industry since the 50’s, what we need is much more innovation, and much, much less management.!
BREXIT Im planning to leave the UK and take my 30years design experienice with me!
If the UK would re-open their immigration policy to non-EU citizens, then the labour shortage concerns might be lessened. As a Canadian chartered Structural Engineer who would like to work in the UK, the current extremely restrictive work permit program has effectively hindered my attempts to find work in the UK over the last 5 years. Stop complaining about how many Polish people you have…they are the only ones able to make it into the UK. That’s why you have a labour shortage and also less Indian than Polish-born people. I’d love to help solve your labour shortage, all it would take is a civilized work permit program (look it up on gov.uk yourself).
Yet another example of a large sector of British industry whining and blaming others for their own failures.
How to solve the staffing crisis in 4 easy steps:
1) Take responsibility for your staffing and training requirements
2) Stop looking for quick fix recruitment solutions to events and growth you have been anticipating – play the long game
3) Invest properly in the training, development and recruitment you’ve identified as needed – consider it an existential issue
4) Provide good (not competitive) pay, conditions and development opportunities to retain the staff you have invested in and who you claim are fundamental to your business.
Recruitment crisis solved.
Couldn’t have put it better myself – well said Nathan
The UK shouldn’t rely on foreign engineers to come to our country and make it great. We have thousands upon thousands of British engineers who are willing and ready to apply themselves and contribute to the engineering industry who have sadly been shunned away into other unskilled trades (recruitment/call centre jobs to name just one is full of engineers)
This is the UK’s opportunity to make the best out of it’s up and coming talent pool of students and if there are still more empty roles for engineers then encourage more people to take it up in education!
Exactly. This should be seen as a prime opportunity to train more Engineers. Older people could also be a great source of talent for a career change. There have been several generations of under training in this area.
My small company has already lost £15K in cancelled contract work directly caused by Brexit issues causing cuts in academic institution funding, and therefore their ability to collaborate with industry.
These are real losses occuring now, not some forecast that can be dismissed as pessimism.
How is academic funding being cut? We are still part of the EU and the government has promised to maintain funding once Brexit happens.
So how is “collaboration” being de-railed?
Sounds like an excuse to dump your company rather than a real Brexit manifestation. And I’m sure there will be far more of this as companies facing uncertain times use Brexit as a useful means of explaining their difficulties or changing contractual conditions with suppliers and other interested parties.
But we shall see.