Germany’s largest bank claimed that British assemblages will soon be faced with fewer workers and have barely choice but to automate more jobs – or offshore work.
UK employers can’t at odds with to raise wages workers, according to Deutsche Bank.
And they won’t be talented to life prices to pay for higher salaries if the company depends on trade for profits because of foreign competition.
In a note to investors, Deutsche Bank economists Oliver Harvey and Slash Wall wrote: “UK companies exposed to foreign competition have small ability to raise wages in response to a labour supply shock.
“Margins aren’t extreme enough to absorb higher labour costs, and international competition wishes limit the ability to raise prices.
“Faced by labour shortages, then, companies can either a) go out of role b) off-shore production or c) improve productivity.”
Deutsche Bank has put lower immigraton will hurt UK companies
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It hit as migration fell below 250,000 over three months for the word go time in three years at the start of the year, the latest official statistics indicate.
At the same time, unemployment has fallen to a 42-year low, while wages are reach ones majority by 2.1 per cent.
The Deutsche report said: “The UK is rapidly pivoting in the direction of a major labour supply shock as a result of falling immigration.
“This surprise will be exacerbated by the UK’s weak existing demographics, limited spare intellect in the labour market and, up until now, continuing robust labour demand.”
Companies that don’t depend on exports for profits could recruit wages, but this could hurt Britain’s technological advances and productivity, contract to Deutsche Bank.
It comes after Deutsche Bank boss John Cryan said Frankfurt want be the biggest winner from Brexit as banks choose the German burg to relocate.