Brexit to lower UK real wages by 2018: Report

The UK’s vote to leave the European Union (EU) in June will reduce the pay of lower-income British workers even if the supply of foreign labor is reduced by major cuts to immigration, according to a new report.

While the Brexit vote had no overall impact on British wages, lower-paid jobs like sales, security and cleaning saw a drag on pay, the Resolution Foundation, a London-based think tank, said on Tuesday.

Resolution estimates that the salaries of British workers in the industries most affected by immigration would drop by 2 percent by 2018.

“Those expecting a wage boost off the back of a post-Brexit fall in migration are likely to be disappointed,” Stephen Clarke, a policy analyst at the Resolution Foundation, said in a statement. “Any such gains will be dwarfed by the losses caused by the post-referendum slowdown in the economy.”

“While it is wrong to say that migration has had no effect on specific groups of natives’ wages and…

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