25 February 2016 | Herpreet Kaur Grewal
The facilities management sector could face "higher labour costs" if the UK left the European Union, according to an HSBC forecast.
The banking giant's Brexit forecast states that sectors with "a large proportion of non-British EU workers could face higher labour costs - notably in retail, construction, airlines and facilities management".
It adds: "If the UK were to vote to leave the EU, we assume there would be no efforts to deport EU migrants already in the UK. But some might leave voluntarily if they perceived the UK to be less welcoming. And inflows thereafter could be restricted.
"Therefore labour supply could shrink in the event of a Brexit. Businesses without significant pricing power could suffer. Sectors with a large proportion of non-British EU workers - notably food manufacturers, leisure, facilities maintenance (such as cleaning and security) and construction - would likely be hardest hit."
The bank concluded: "The supply of candidates to fill jobs would worsen in the event of a Brexit, unless demand for labour were to fall sharply."
This would especially be the case for sectors that have a large proportion of non-British EU workers, it said, including "food manufacturing, and to some extent the supply chain that flows from that - leisure, including restaurants, hotels; and facilities maintenance, including cleaning, guarding and maintenance".