The real effects of Brexit on labour demand
The real effects of Brexit on labour demand
The implementation of Brexit produced markedly different experiences for Northern Ireland, which effectively remained within the EU’s Single Market for goods, and the rest of the UK. This column exploits this contrast to investigate the impact of Brexit on UK firms. Firms located further from the Irish border, and thus more exposed to the full economic consequences of Brexit, experienced significantly greater negative effects, reducing their workforce by up to 15.7% relative to less exposed firms. These firms also reported lower growth expectations but increased investment in R&D. Importantly, firms with prior international trade exposure could mitigate these adverse effects better. The findings emphasise the critical roles of trade integration and innovation in firms’ adaptation to Brexit-induced disruptions.
Do, Hang
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Duong, Kiet Tuan
3045ac6b-a7ad-4356-9ac0-b6ce5ae93cfe
Huynh, Luu Duc Toan
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Vu, Nam Tuan
0ddcf12e-f919-4b5e-ad6b-eb60a8fa2475
22 May 2025
Do, Hang
98fe3248-9673-4c6a-8f9a-74cf68a59930
Duong, Kiet Tuan
3045ac6b-a7ad-4356-9ac0-b6ce5ae93cfe
Huynh, Luu Duc Toan
f826c2b7-ffa2-4d9d-bdb8-3e1dd532dc7f
Vu, Nam Tuan
0ddcf12e-f919-4b5e-ad6b-eb60a8fa2475
Hang Do (Author),
Kiet Tuan Duong (Author),
Luu Duc Toan Huynh (Author),
Nam Tuan Vu (Author)
(2025)
The real effects of Brexit on labour demand
VoxEU
Abstract
The implementation of Brexit produced markedly different experiences for Northern Ireland, which effectively remained within the EU’s Single Market for goods, and the rest of the UK. This column exploits this contrast to investigate the impact of Brexit on UK firms. Firms located further from the Irish border, and thus more exposed to the full economic consequences of Brexit, experienced significantly greater negative effects, reducing their workforce by up to 15.7% relative to less exposed firms. These firms also reported lower growth expectations but increased investment in R&D. Importantly, firms with prior international trade exposure could mitigate these adverse effects better. The findings emphasise the critical roles of trade integration and innovation in firms’ adaptation to Brexit-induced disruptions.
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Published date: 22 May 2025
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Local EPrints ID: 503597
URI: http://eprints.soton.ac.uk/id/eprint/503597
PURE UUID: a6ac9ceb-0295-40b8-adbc-68a7ccc984ff
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Date deposited: 06 Aug 2025 16:31
Last modified: 23 Aug 2025 02:17
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Contributors
Author:
Kiet Tuan Duong
Author:
Luu Duc Toan Huynh
Author:
Nam Tuan Vu
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