Dive Brief:
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With the Brexit vote is still fresh, no one really knows when the actual split will happen and how it will affect the UK. Either way, there are implications for U.S. workers and the economy, which by extension means HR leaders may need to follow the aftermath of the controversial referendum (though there are already rumors it may never happen).
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If and when Brexit becomes reality, Federal Reserve chair Janet Yellen has already been on record saying that Brexit "would negatively affect financial conditions and the U.S. economy," according to CNN Money.
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According to CNN Money, if the Brexit-driven dire volatility in global stock markets extends for a long period, worried U.S. employers and consumers may pull back on spending, which in turn will hurt the economy and nation's job growth outlook, which has slowed recently.
Dive Insight:
CNN Money points out that while the UK only has 0.5% of the U.S. trade total, the "connections go well beyond direct trade" between the two nations.
"The keys to whether the U.S. economy is affected significantly will be whether equities tumble enough to have a major impact on business and consumer confidence," Jim O'Sullivan, chief U.S. economist at High Frequency Economics, a research firm, told CNN Money.
AFL-CIO chief economist William Spriggs told Bankrate that Brexit will be "horrible for U.S. workers" because the suddenly strengthened U.S. dollar, combined with a eurozone business investment slowdown, will be a drag on U.S. exports and manufacturing employment.
Chris Versace, author of "Cocktail Investing: Distilling Everyday Noise Into Clear Investment Signals for Better Returns," told Bankrate that export-dependent U.S. jobs will certainly suffer.
HR leaders in those sectors should pay close attention to the Brexit hangover and plan accordingly.
