FRANKFURT – In the recent study carried out by economists, it has been cited that the departure of Britain from the European Union without a deal may put around 6,00,000 jobs at risk. Among all the economies, Germany would get affected the most. In interesting findings, researchers at the IWH institute in Halle, eastern Germany, analyzed the outcome on the world economies if UK imports from the remaining EU witness a fall of 25 percent after Brexit. The researchers suspected about 103,000 jobs would be under threat in Europe’s largest economy Germany and about 50,000 in France. However, they hinted that the risk involved due to Britain’s exit doesn’t mean workers would be laid -off.
“Given the lack of skilled labour in many advanced economies, firms could also try to keep staff on by cutting hours or opening new markets,” they said.
Right now, it is difficult to tell whether Britain would sign the deal to exit the EU or not. But it would be legally eliminated from the EU if it doesn’t sign the deal. And if Britain chooses the path for “no-deal” exit then it would get affected on various grounds. First of all, a no-deal Brexit will lead to the imposition of Tariffs at the border and it would affect global supply chains. Keeping into focus only on trade in goods and services, the economists said that since markets are globally connected so no-deal Brexit would also affect the trade of the countries outside the European Union.
A total of 180,000 posts at firms will be affected in the remaining 27 remaining EU countries directly exporting to the UK will be at risk. Apart from this, about 430,000 more workers in the EU and around the world will also get affected. This is so because their employers sell their products to companies who in turn export to Britain. Also, in Germany, the car industry will be worst affected due to a loss of 15,000 jobs. Companies namely Volkswagon and BMW will be affected to a great extent.