Blighty is facing a labour shortage which is not going away thanks to the super soaraway oven-ready post-Brexit points-based immigration system.
According to a recent survey by Finbri, 83.51 per cent of UK business owners are concerned about the impact of labour shortages on their companies, with 47.69 per cent being “concerned” and 35.82 per cent being “strongly concerned.”
Finbri Bridging Loan Broker Stephen Clark said labour shortages had become an ongoing conversation among businesses since Brexit, and the issue is only likely to worsen in the short term, offering little to contribute to the UK economy’s rebound.
According to Clark, the lack of available labour, declining productivity, falling earnings, and a general “loss of competitiveness” for many businesses are interconnected issues that need urgent attention.
Another Office for National Statistics (ONS) survey found that 13.3 per cent of UK companies face a labour shortage.
The labour shortage makes it difficult for businesses to develop, invest, and grow, according to Finbri. Due to rising labour prices, business owners must find alternative, often more expensive, ways to fill the 1.19 million openings, the Finance Broker firm emphasised, noting that the COVID-19 pandemic has exacerbated the situation, with several businesses suspending or firing employees, reducing the number of available labour.
The firm added that the pandemic was and continues to be a factor in the UK’s labour shortages. According to Finbri, several businesses were compelled to suspend or fire their employees due to the economic slump. Furthermore, the firm stressed that hiring foreign workers had become more challenging for companies due to travel bans and lockdown measures.
The labour shortage issue is expected to remain a top concern for UK businesses in the coming years, Finbri stated, especially with the implementation of the post-Brexit points-based immigration system that would restrict who may enter the country and find employment.
Finbri also mentioned how travel bans and lockdown measures have made it more challenging for companies to hire foreign workers. The post-Brexit points-based immigration system has restricted the entry of low-skilled employees from the EU, which has created a greater reliance on highly skilled individuals from outside the EU.
The survey revealed that UK business owners are still optimistic about their workforce growing during the coming year. Nevertheless, labour shortages are likely to persist for some time. The COVID-19 pandemic and the implementation of the post-Brexit points-based immigration system have only made matters worse. Businesses must discover innovative ways to fill open positions and improve their operational efficiency to stay competitive in the global market, Finbri stated.
