UK vehicle retailers facing post-Brexit employee shortfall

Coachworks Consulting has revealed concerns that the post-Brexit employment status of EU nationals could cause a serious recruitment shortfall in the UK’s car retailing sector.

The shortage of suitable candidates would be further exacertabated by any failure to agree rules on the movement of labour between the EU and the UK.

Karl Davis, managing director of Coachworks Consulting, said: “One of the key unresolved issues in the Brexit debate is what will happen after 29 March, 2019 when businesses need to recruit new staff?

“The UK car retailing sector has long-benefitted from the skills and work ethic of employees from EU member states across all disciplines from sales and aftersales through to valeting. While the status of European immigrants currently employed in our sector looks assured, we still do not know if the free movement rules will remain.”

Davis added that the Society of Motor Manufacturers and Traders (SMMT) has estimated that 10% of staff employed in the UK automotive sector originate from EU member states. There is a concern that without free movement of labour there will be an insufficient labour pool to support any future employee churn.

While the government has offered EU citizens currently working in the UK a settlement scheme, future recruitment restrictions could also have a negative impact on the the retail motor industry.

Davis also cited research by the Office for National for National Statistics (ONS) which shows that the number of EU nationals working in the UK dropped year-on-year in Q1 2018 by 20,000 to 2.29m. This was the first decline in eight years.

“We already know that since the Brexit vote fewer EU nationals are coming to the UK to work. With the UK government committed to achieving some form of Brexit, car retailers across the UK need urgent assurances now about who they can recruit after March 2019 if business plans being written now are to be achieved,” he said.