Brexit: The harsh reality of the flexible economy PwC thinks will do fine

Flexible economies sacrifice workers' rights on the altar of keeping employers' costs down. The result is insecure employment, and the TUC makes clear that this is increasingly becoming the norm

Waiting staff are among those who live with insecure employment in Britain's flexible economy (Getty)

PricewaterhouseCoopers clearly wants to be the Brexiteer’s fave accountant.

The firm has just published a report saying it that might not be so bad after all. Triggering Article 50, it argues, will ultimately prove no more than a bump in the road when it comes to the UK economy’s long-term health.

That should ensure PwC keeps Tim Martin’s business at Wetherspoon’s for starters. But before Britain’s noisiest business Brexiteer spills his pint in delight at there being at least one economist that takes a similar view to him, it’s worth just spending a few moments reflecting on why the firm feels it can take this stance without being laughed out of the room.

Chief economist John Hawksworth says the UK should do better than many of its rivals because of its “relatively flexible economy by European standards”.

Now let’s take a moment to consider what that means. “Flexible economy” is one of those bland phrases that are sometimes used to describe unpleasant things in an attempt to make them a bit more palatable. It’s not quite as bad as describing killing civilians as “collateral damage” but it comes from the same place.

A “flexible economy” is one that allows employers to do pretty much what they like in the name of keeping their costs down. Flexible economies allow people like, say, Mr Martin, to easily fire workers if he feels the need. They accord employees few rights, and are more accepting of practices such as hiring people on zero hours contracts than economies considered to be inflexible.

Proponents argue that they keep more people in work. But it is the type of work for which wages can be changed (for which, read cut) at the drop of a hat. Employees, when they have old-fashioned things such as employment contracts, may not enjoy paid holidays, or even access to sick pay. What’s that? You need to know your hours for the purposes of securing childcare? Pah. Get with the programme. Don’t you understand what a flexible economy means? It means you have to be flexible, not us.

It’s worth noting that on the same day as PwC published its report, the TUC published another one that it commissioned from the Learning and Work Institute.

It found that insecure work has increased by a quarter since 2011 and that one in ten people are now in it. That the increase has been driven by care workers and waiting staff, while depressing, probably won’t come as a great surprise anyone. But the report also cites education workers – notably teachers – as accounting for a tenth of the increase. In other words, insecure work is spreading throughout the labour market. If you’re not in it now, you might be very soon.

This is the reality of the flexible economy that people like Mr Hawksworth cheer and think will make for a better outcome, post Brexit, than the majority of forecasters feel.

There is a rich irony that many of the lower income groups that voted in favour of Brexit, alongside spoiled baby boomers and ultra wealthy people like Mr Martin, did so because they were concerned about immigration and the impact of the free movement of people on their employment chances and job security.

Their votes were a result of their economic insecurity. Yet it is only the continuation of that insecurity that, according to PwC, will keep the UK’s economic head above water from now on.

Mr Hawksworth also notes that for his rosy view to be realised, the UK will need to remain open to “talented workers”. In other words, we still need to let immigrants in.