The post-Brexit labour market – still a gap to fill

The conditions of the new system, while liberal, are too onerous to compensate for the loss of free movement in low-skilled sectors of the economy, which has led to labour shortages. We do not yet know how employers are responding to these shortages, and it will take time for that adjustment to happen, but some combination of higher wages and prices and less output is likely, especially in work that is hard to automate.