Labour shortages could impact UK’s economic recovery, says experts
A recent report on the latest business trends suggests that despite the surge of hiring among UK firms in July, the lack of working employees could still threaten the UK’s economic recovery.
These staff shortages are a result of Brexit and pandemic-related factors, says the study. Although the easing of lockdown has encouraged many workers to branch out, companies are still struggling with a lack of employees.
The report also revealed that the job market flourished as restaurants and bars opened without restrictions enforced due to the COVID-19 pandemic, such as customer capacity limits.
However, many companies reported labour shortages due to Brexit and being told to self-isolate by the NHS Covid app. As a result, workers became worried about their circumstances and managers about rising costs. Plus, many wages rose too.
Overall charges for companies went up due to the UK’s exit from the EU, as issues arose from importing goods. Plus, a lot of pressure was added onto global supply chains. Additionally, these factors impacted employees’ wages – many increased to retain and attract talent, and signing-on bonuses of up to £10,000 were introduced to entice candidates.
The Bank of England predicted last week that unemployment had peaked, and with a tight labour market that has left employers grappling to take on workers. It also forecasted inflation to hit a 10-year high of four per cent by the end of 2021.
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