Since the 2016 Referendum where the UK decided that they would leave the European Union, Brexit has become a household word. It has been almost 2 years; and on the 29th of March 2019 the UK are scheduled to leave the UK at 11pm.
But apart from how the UK will be affected by Brexit, the other focus is – how will Ireland be affected, as it is the only primarily English-speaking country left in the EU (positive 🙌)
Most importantly how will Brexit affect our jobs or career opportunities?!
According to a recent Employment Monitor, there has been a significant increase in professional opportunities available in Ireland (Morgan McKinley, 2018).
Brexit & the increasing compliance requirements of legislation (GDPR legislation) brought a large increase in activity in the Recruitment world in 2018.
Jobs like asset management, compliance, risk management and financial control are some areas which were affected in 2018 due to being associated with Brexit related activity. Another area which was very closely affected was Technology.
One of the most positive impacts for Ireland and Irish jobs include a likely increase in multinational businesses moving to Ireland from the UK. This is because, in comparison to the EU tax rate average of 19.71%, Ireland offers an attractive 12.5% corporate tax rate as well as a highly educated workforce.
As well as this, the uncertainty of BREXIT in the UK has given Ireland an advantage with European talent pools; as living and working in the UK will become increasingly difficult.
However, due to this influx, Employment and Irish Residence Permits have had a backlog – prolonging the process for overseas recruitment.
These delays mean that non-EA professionals who have come to Ireland with their visa and employment permit to live here, have had a delay in getting their interview with immigration for their residence permit meaning that they can’t get a multi-entry visa and are subsequently stuck here not working until they get their permit!
Although we have only seen the impeding effects which Brexit may have on Ireland over the last 6 months, the ‘’Real-Deal’’ will come into effect on the 29th of March this year.
Whether in the words of Noel Edmonds it’s a ‘Deal or No Deal’ situation, Irelands jobs market should and will benefit greatly from Brexit; with Dublin now being deemed as the next ‘Top Brexodus Destination’.
Studies show 21 out of 59 firms voted Dublin as the most popular choice for relocation (EY Brexit Tracker, 2018).
How will Brexit affect cross-border workers?
It is believed up to 23,000 -30,000 cross border workers (i.e.: live in one part of Ireland but work in another (the Common Travel Area (CTA)). This is mainly due to salaries being more attractive in the Republic of Ireland than in the North.
Cross border workers currently generate social insurance contributions in both NI and Ireland which can be combined in order to gain social security benefits and pension entitlements – which can also be exported to different EU states.
The December 2017 Joint report (EU & UK) protects the rights of workers who are already in cross-border employment. The thing is, it does not safeguard the rights of future cross-border workers (like upcoming graduates), and these assurances are not set in stone.
At present (pre-BREXIT), the EU Social Security Co-Ordination Rules protect the social security rights of workers seeking to move between two counties – once the countries are within the EU that is!
The UK/EU draft withdrawal agreement is set to include the EU Social Security Co-ordination Rules. This means that cross-border workers working in the Republic can declare their income in Northern Ireland; get access to tax credits, healthcare, social security benefits and be taxed by the UK government – during the transition period.
How will the negotiations affect the social security, tax & healthcare entitlements of cross-border workers post-Brexit (after the transition period)?
Post Brexit, the future of cross-border workers will be governed by the draft Political Declaration where social security coordination rules look unwelcoming for cross border workers, and future graduates!
The Declaration states that the parties:
“agree to consider addressing” social security coordination in the light of future movement of persons”
What will happen? Who know’s 🤷
Will the UK enter into a bilateral agreement to access the single market such as the model adopted by Switzerland….? Only time will tell!
How will Brexit affect graduates seeking employment in Ireland?
As a result of Brexit; and Ireland’s great reputation in terms of attracting foreign direct investment (We have become one of the world’s leading destinations for finance, technology and pharmaceutical companies); new opportunities will be created, especially for graduates.
This will (hopefully) keep graduates on Irish soil with the increase in graduate programmes available!
Graduates within the Finance, Tech & Pharmaceutical industry, looking to gain employment with one of the Big 4 in the ‘’Big Smoke’’ i.e. Dublin, will have a bit of a competitive advantage when it comes to Brexit.
- According to the IDA, more than a dozen global financial services firms have announced Ireland as the destination of their new European headquarters; with Dublin being the obvious option for London’s major banks (eg: Barclays)
- Even in our wee county (Louth), WuXi Biologics announced their investment of €325m in developing a new manufacturing facility in Dundalk (the companies first site outside of China). Wasdell Group is also building a new pharmaceutical packaging plant in Dundalk.
Graduates nowadays are a lot more tech savvy with strong skills in technology and math; strong emotional intelligence, creativity and adaptability – transferrable skills that will make an impact on the workplace.
For companies to benefit from these skills and attract this pool of talented graduates, they will have to offer competitive packages and employment benefits, flexible working arrangements, and the opportunity for further training and development so that they can beat off the competition.
In the words of Albert Einstein ‘’In the middle of difficulty lies opportunity’’ and although there’s a strong element of complexity and uncertainty around Brexit in Ireland in particular; there looks to be area’s where Ireland will benefit and prosper from – After all, Ireland is now the bridging gap between the US and the EU!
Last night, Theresa May’s “withdrawal agreement” Brexit deal was roundly rejected by British MP’s (432 voting against the deal, 202 approving it) which is being called the worst political defeat in parliamentary history.
The most argumentative issue for British MP’s is “the Irish backstop” (the legally binding insurance policy ensuring there is no hard border between Ireland and Northern Ireland (no customs, no regulatory checks on goods passing between the two) for a 2 year transition period – leaving the UK aligned indefinitely to many EU laws.
The opposing Labour party (Jeremy Corbyn) has put forward a motion of no-confidence in Theresa Mays government; calling for a general election. Will there be a second referendum on Brexit?
The UK government now has 2 days to create a new plan of action.
EU officials have insisted that after lengthy negotiations and agreement with Theresa May last month, the current deal is their final offer.
The outcome of Brexit is up it the air; but what we do know at Recruit Island is this:
We have a wide range of jobs available from Healthcare, Nursing, Admin & Finance, Catering & Domestic Jobs, Construction & Engineering, Supply Chain Management, Academic, and more! We are ready to help you!
Article Written By:
Lauren McLoughlin | Recruitment Consultant | Admin & Finance Division
DD: + 353 (0) 429368324
Email: lmcloughlin@recruitisland.ie
