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Bloomberg
The outlook for Britain’s labour market is “fairly bleak†amid the uncertainty surrounding Brexit and low levels of productivity, according to the Chartered Institute of Personnel and Development.
Slower growth, lower real wages and increasing precariousness in the workforce will be the major challenges for the UK government and businesses over the next 12 months, the CIPD said. Companies could also be faced with a shortage of workers from the European Union and British lawmakers should clarify the status of EU citizens in the country, the body said.
“We simply cannot afford for businesses to live in limbo,†said acting chief economist Ian Brinkley. “Very few employers want a hard Brexit and the government must consider this when planning its strategy for both the final arrangement and the transition towards it.â€
With the government preparing to begin formal negotiations to leave the EU next year, the Bank of England has said growth will likely slow, while the weak pound is set to boost inflation above its 2 percent target. But with employers reluctant to invest and productivity levels languishing, wages will be hard-pushed to keep pace with prices, with the CIPD predicting median basic pay settlements of 1.1 percent in 2017.