LONDON: The UK’s exit from the European Union, commonly known as Brexit, resulted in the loss of about 40,000 jobs in London’s financial center, according to the Lord Mayor of the City of London, Michael Mainelli. This figure is significantly higher than earlier estimates.
Mainelli explained that cities like Dublin, Milan, Paris, and Amsterdam benefited as jobs moved from London after the Brexit vote in 2016. Dublin alone gained around 10,000 positions. “Brexit was a disaster,” Mainelli said, adding that the City had around 525,000 workers in 2016 but lost just under 40,000 due to the effects of Brexit.
Previous estimates by consultants EY suggested that only 7,000 jobs had shifted to the EU by 2022, but Mainelli’s figure highlights a much greater impact. However, the City of London has seen growth in other areas, such as insurance and data analysis, with worker numbers increasing to 615,000.
Mainelli noted that the financial sector was hit hard by Brexit, but new opportunities are helping the City recover. He has made efforts to rebuild relations with Europe, visiting several countries this year to strengthen ties.
Despite efforts to reduce immigration and ease regulations after Brexit, immigration increased, regulations remain challenging, and the UK economy has slowed. Prime Minister Keir Starmer is working to improve business relations with EU countries but has ruled out rejoining the EU’s single market.
While the UK’s financial services sector has declined, with a 15% drop in economic output since late 2019, other EU countries like France, Germany, and Ireland have seen growth.