(Bloomberg) – First, the UK went without trucks. Now, post-Brexit campaigners are warning of another immediate shortage in the job market: bankers.
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International groups, mainly from the European Union, represent about 20% of the 1.1 million people working in financial services in the UK. But Brexit makes it harder and more expensive to hire foreigners, according to a report by TheCityUK, a lobby group, the London City Corporation and Consulting EY.
“Talent is a consistent number issue when talking to our companies,” said Miles Celik, CEO of TheCityUK. “Depending on the ability of London and other parts of the UK to attract talent from abroad.”
Prior to Brexit came into force in January, EU citizens had the right to live and work in the country. The application period for the so-called established status of EU citizens ended in June, which added further problems to the already tight labor market in the country’s supply chains.
“The challenge is that EU citizens are now in the immigration system,” said Seema Farazi, EY’s global immigration partner and co – author of the report. “The full impact was not felt as the blocks were quiet due to infection.”
The changes will also come at a huge cost. According to previous estimates by the London Corporation and EY, Weir’s sponsoring companies must pay more than £ 21,000 (US $ 28,228) to transfer a worker, partner or partner and two children to the UK for five years under the Tier 2 visa process.
Another major concern is the “gap in the system for short-term business travel,” the report says. Today, “a relatively small change in activities often results in a drastic increase in the cost, time and administration associated with the implementation of the immigration regime and there is no compromise between visitor status and work visas.”
The report recommended the creation of a short-term hybrid business visa to allow employees to enter the UK for manufacturing activities without a work visa.
The report also warns of problems with business travel. An anonymous participant in the report said that it was difficult to arrange visas for employees in the FinTech sector – 42% of UK workers internationally – to participate in accelerated labs.
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