UK faces shortage of labor due to Brexit and COVID-19 pandemic

UK faces shortage of labor due to Brexit and COVID-19 pandemic

by Pranali Mehta

Numerous employers across the UK are struggling to hire new staff as the government moves towards lifting the national lockdown. Industry statistics reveal, this new phenomenon is supposedly fueled by a widescale exodus of foreign workers, caused by the COVID-19 pandemic as well as Brexit.

As per the CIPD and Adecco, a leading recruitment firm, employers intend to hire new workers at the fastest rate in over eight years. This job boom would be mainly driven by the reopening of the nation’s retail and hospitality sectors, as restrictions related to the pandemic are relaxed in Wales and England on Monday.

However, in a sign of surging pressure in the jobs market amid fast growth in customer spending, the CIPD stated that there had been a sharp fall in the number of workers in EU, leading to the risk of possible labor shortages.

Jobs website Adzuna, which is mostly tracked by government officers for warning signs related to the labor industry, found the overall number of searches for overseas job opportunities had halved from North America to western Europe. A drop of around 250,000, as of February 2020, just before the coronavirus spread across the UK.  

The emerging proof of labor shortages across the UK comes as employers across US also struggle to hire staff, with jobseekers postponing their hospitality jobs, especially owing to very low wages, safety concerns, as well as possible harassment from customers over COVID-19 safety rules.

Business leaders have cautioned that a shortage of overseas workers after lockdown will put a handbrake on the nation’s economic revival. Approximately 1.3 million people are projected to have left the United Kingdom since 2019 as many returned back to their birth country to weather the global pandemic from their homes.

Meanwhile, the Bank of England is expecting the unemployment rate to top at almost 5.5% after the end of furlough, far below the initial fears of the economy returning to the 1980s, when joblessness had increased to 12%. before the COVID-19 pandemic hit, unemployment was at 4%, representing approximately 1.3 million people.

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Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...