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The Labour Market Implications of Brexit: A Beveridge Curve Analysis
That Brexit disrupted the UK economy is widely agreed. Studies refer to its impact on exports and imports and on food prices. Less work has been done with respect to the impact on the labour market. This article concentrates on the relationship between vacancies and unemployment, which serves as an indicator of labour market tightness. Post-Brexit, the number of vacancies relative to the number of people unemployed increased dramatically. Analysis is based upon difference-in-difference methods. It suggests that by mid 2022 the UK’s V/U ratio might have been some 25% higher than it would have been without Brexit.
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