Profound demographic shifts are shrinking the global supply of workers with surprising speed. Post-Brexit, a points or quota system seems likely to control migration to the United Kingdom. Coupled with the demographic changes, this could create significant challenges for the U.K. labor force.
The peak migration demographic of 20- to 34-year-olds has been falling within the European Union by around 1 million per year. After Brexit, the United Kingdom will, therefore, find itself competing in a shrinking pool with other countries that are offering free movement and more stable currencies attractive for remittances.
The Mercer Workforce Monitor projects that, if net migration in the United Kingdom falls to 100,000 per year by 2020, the U.K. workforce will not grow at all in the period to 2025 — as recently as 2016, it was approximately 350,000.