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Posted by on in Employment Law
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Chancellor Warns of Job Losses in Brexit

Chancellor, George Osborne has warned that more than 800,000 jobs could be at risk if the UK votes to leave the EU.

He warned that if the UK left the EU, the likelihood of a recession would significantly increase, which in turn , would lead to more than 820,000 jobs going. The latest warning comes after Treasury which analysed potential unemployment and decline in the overall value of property if the UK leaves the EU.

An increase in borrowing in the public sector would result in a number of redundancies and a recession could be triggered.

Speaking in the event of a “Leave” vote, Osborne stated that the punishment faced by the UK economy for an exit would be severe. In a statement he said: "With exactly one month to go until the referendum, the British people must ask themselves this question: can we knowingly vote for recession?

"And to those who say we should vote to leave, I'd say this: you might think the economic shock is a price worth paying. But it's not your wages that will be hit, it's not your livelihoods that will go, it's not you who will struggle to pay the bills.

"It's the working people of Britain who will pay the price if we leave the EU."

Factors such as the EU refusing to strike a deal with the EU after their exit would only intensify the situation according to those who gathered the figures.

Warning over Potential Wage Drop

According to many figures, property prices in the UK could significantly decrease in the event of an exit from the EU, with the number of jobs being lost also resulting in a potential recession.

As well as a number of jobs being lost, Mr Osborne stated that the wages in the UK would fall drastically. Speaking on the analysis carried out by the Treasury he said: "The Treasury's analysis finds that real wages will fall by almost 3% in the first two years compared to where they'd be if we remain in the EU.

"To put that in perspective - that's a pay cut worth almost £800 a year to someone working full-time on the average wage.

"Within two years, at least half a million jobs would be lost.

"That's 80,000 in the Midlands, over 100,000 jobs across the North, over 40,000 jobs in Scotland, over 20,000 in Wales, almost 15,000 in Northern Ireland.

"In London, over 70,000 jobs would be lost. Here, across the South, almost 120,000 jobs would go.

"And that's the lower end of the estimates - across Britain as many as 820,000 jobs could be lost,"

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