Labour crisis in the UK

Tuesday 08th June 2021 09:11 EDT

New figures from auditing giant KPMG and the Recruitment & Employment Confederation (REC) have shown that employers are in the market for both permanent and temporary staff. 

The study showed that demand for staff has shot up in all 10 job categories that the researchers monitor. The steepest increases were in IT and computing and hotel and catering. The weakest increase was in the retail sector.


Amid a spike in demand not seen for 23 years, the supply of staff is contracting at its fastest rate for four years. The reduction is partly due to uncertainty lingering after the pandemic, and a fall in candidates from the European Union after Brexit. 


Demand for new workers soared in May at its fastest rate since January 1998 as large parts of the economy started to re-open following months of lockdown. As they start ramping up businesses after the pandemic lockdowns, companies are struggling to fill positions. 


Recruitment experts have warned that a labour crisis could slow down the UK’s recovery from the economic impact of the Covid-19 pandemic. The British Beer and Pub Association (BBPA) warned that its members were facing an “acute” shortage of staff as some furloughed workers left the sector and EU nationals did not return to the UK.

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