One-third of the workers employed in food manufacturing is EU immigrants
The decision of the majority of British people will have a direct impact on the companies that rely on migrant laborers to get work done. In the coming years when the process to exit EU commences, these companies will have to redraw their business model.
According to latest figures, one-third of the workers employed in food manufacturing is EU immigrants. Once the Brexit come to full existence, the void created by leaving of this workforce will most likely be replaced by robots, says a report by the Resolution Foundation think-tank.
The report also says that a fifth of the domestic personnel are EU migrants and so is one in eight laborers in various sectors such as agriculture, warehousing, and textiles. Once Britain cut all chords with the EU, the free movement will be a thing of the past and filling of these vacancies will be a gargantuan task as it will become costlier.
To circumvent such a harsh scenario, the report says, employers will gravitate to investing in automation, which requires just one-time investment.
The reports suggest that such a change is not bad for the UK as the readily available cheap workforce over the years have allowed UK employers to save on the relatively low levels of capital investment.
Adam Corlett, an analyst at the Resolution Foundation was quoted by Financial Times saying: “What the UK needs – with its high employment, terrible productivity performance and low investment – is more robots.”
The think-tank is of the opinion that the induction of robots or latest technologies in different sectors will help in the recovery of productivity and pay growth in the UK.
This won’t be the first time such large-scale automation is being witnessed. Earlier in the US, mechanization transformed California’s tomato industry when the laborers from Mexico has to leave after the end of Bracero program.
In the current context, food manufacturing and food services in the UK are more susceptible to such rapid automation. But the report says the automation of these sectors will not have a bearing on overall employment even though it might end opportunities in certain low paid jobs, which can lead to serious unemployment issues among certain people and places.
Over the last 30-years, middle-skilled jobs in the manufacturing sector have shown a decline in working hours, but better jobs have popped up in sectors such as IT, health and caring.
But, with “Leave” proponents including Boris Johnson and Nigel Farage opting to stay out of the race to “10 Downing Street”, there is a growing uncertainty among the Leave campaigners over the conviction of their leaders in the future of an independent UK.
When Nigel Farage announced through Good Morning Britain that he cannot guarantee EU money will now be spent on the National Health Service, saying that was a mistake, at least a few of the “Leave” voters have felt cheated.