Brexit has been one of the biggest political and economic events in the United Kingdom since the Second World War. As everyone knows, the referendum in 2016 plunged the country in political and economic chaos that is going on to this day. Although the UK has still not made its formal exit from the European Union, it is increasingly likely that an economic turmoil is going to grip the nation when it eventually happens. However, many industries are already making preparations for a post-Brexit world, and job losses have already taken place in certain sectors. The banking and financial sector is one of the UK’s most important industries, which has made London a powerhouse of the global financial elite. At the time of Brexit, there was a widespread belief that London prospered as a financial hub because of easy access to Europe and the global markets.
Brexit would curtail that competitive advantage considerably, and hence, there were fears that plenty of jobs were going to be relocated. However, with Brexit looming in around a month, it has emerged that the job losses for the banking sector due to Brexit are still only 1000. In a report published by Ernst & Young, the consultancy firm stated that since the referendum in 2016, many banks in London had moved jobs to other financial hubs in Europe. The main beneficiaries have been Paris and Frankfurt. However, the total number of jobs that have vanished from London is still only 1000, and that is quite low considering the crisis that many other industries are going to face.
Moreover, London has continued to thrive as the world’s leading financial hub and remains in the lead in several key segments. However, experts in the banking sector have repeatedly warned that Brexit is going to result in lower economic growth and that in turn is going to hurt all those who work in the industry. The risks are particularly unsettling when one considers the fact that a ‘no deal’ Brexit is still not off the table. The current Prime Minister Boris Johnson has set the deadline for Brexit on October 31, and currently, there is complete political chaos with regards to the whole thing. That being said, it is important to point out that the City of London has been largely unscathed from the chaos that has been unleashed by Brexit.