Brexit and Covid-19 have left gaps in the workforce, giving job-seekers more leverage
Workers travel through London Bridge rail and underground station during the morning rush hour in London, Britain. File photo: REUTERS/TOBY MELVILLEA combination of the pandemic and new immigration rules after the country left the EU has left key industries suffering from intense shortages of workers. With the supply of candidates falling at a record pace, that’s fuelling a rapid escalation of wages as firms scramble to fill vacancies left by immigrants from EU countries.
Drivers for supermarket chains Sainsbury and Tesco are considering strike action. The British Meat Producers Association says pay for processors has spiked to as much as £18 an hour, twice the minimum wage. The shortages are already leading to public signs of strain. The British summer has been filled with stories of firms in dire need of truck drivers, and pictures of empty shelves at supermarkets.
The UK’s biggest business lobby warned this week that the issue could last for as long as two years, and recent figures point to a worsening situation. Employers added 200,000 job adverts in the last week of August alone, and the REC estimates the total is almost 1.7-million. That said, there are signs the latest developments don’t mark the start of a new trend in rampant wage growth.
The government has so far refused to address the worker shortages by allowing changes to its visa policies.
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