Number of EU nationals working in the UK starts to fall

EU nationals working in the UK began falling in the last quarter of 2016. This has added to evidence that employers are finding it increasingly difficult to attract and retain business and staff from Europe since our decision to leave the EU last year. Figures from the Office of National Statistics yesterday showed that there are 2.2m nationals of another EU country, almost 19,000 less than the previous quarter. The ONS figures add to the evidence that the fall in the value of the pound as a consequence of Brexit are starting to deter workers from Europe. The depreciation of Sterling means that earnings will be worth less in other EU countries.

One of the biggest questions hanging over the Brexit debate is whether EU nationals will stay have their existing rights.

Useful information for clients with a Euro requirement

For clients with Sterling, any developments and stories such as this should be closely monitored. Politics has been the main driver for GBP/EUR exchange rates of late, since the 5th February and now the Pound has rallied nearly 2 cents gaining you €4000 extra when transferring £200,000 into Euros.

Comments made by David Davis on Tuesday which involve pushing back the date that Article 50 (the legal mechanism for leaving the EU) could make investors uneasy and as a result weaken the Pound longer term. If I were looking at buying Euros, it may be worth doing something now whilst the momentum is with the Pound. The UK economy is testament to this, with more workers than ever in employment according to figures released yesterday and the highest rate recorded since data has been collected dating back to 1971. Short term spikes like we saw yesterday should be capitalised on in my opinion.

Pound to Euro exchange rates are currently holding firm around the 1.17-1.175 level, however as we have recently seen political news has the capability to quickly unwind any gains that strong data has produced. Getting in touch with your dedicated broker may help to mitigate risk in this much uncertain market. Call us on 01494 725 353 or email myself Ben Fletcher and Ill be happy to respond personally.


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