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Does Brexit affect the UK labour market?

The latest observations are for January 2023 for panel a) and December 2021 for panel b). Almost two and a half years after the United Kingdom’s exit from the EU’s Single Market and the EU Customs Union, there is increasing evidence that Brexit has had negative effects on UK trade and the UK labour market.

How will Brexit affect UK exporters?

Brexit-related effects are likely to include the fact that the UK is a relatively small market for individual EU exporters, so it may not be worth the cost of additional paperwork to continue to export to the UK.

How has Brexit affected trade?

On the trade side, after controlling for pandemic-related effects, Brexit appears to have caused a significant decline in EU-UK trade in both directions, which, however, may recover to some extent over time, once UK and EU firms have fully adjusted to the new environment.

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