Britain suffers from a huge shortage of manpower .. Where did the workers go?

LONDON

- The British economy is living in a state of acute labor shortage, which the country has not witnessed for decades, which has led to a shortage of some foodstuffs, the closure of a number of stores and the reduction of the accommodation capacity of many hotels due to the lack of suitable manpower.

Since mid-July, which coincided with the reopening of the country and the significant easing of quarantine restrictions, the market has appeared to suffer from a shortage of labor, which is described as "low-skilled labor" who work in construction, tourist sites and driving trucks.

So far, the British government has not found a solution to this rare phenomenon, which threatens to raise prices, and lose many materials from the market by Christmas, an occasion that witnesses an unparalleled consumer "explosion" in the country.

what is happening?

Job seekers in Britain are facing the worst labor shortage crisis since 1990, according to the British Employment Confederation.

According to the same source, the number of workers available in the market has declined at the fastest rate since 1997.

The labor market in Britain is facing an unprecedented state of pressure, as an opinion poll conducted by the British Chamber of Commerce showed that 70% of British commercial companies are finding it difficult to find workers during the past three months, especially in the public works sector, truck drivers, and workers in hotels and restaurants. .

This is happening at a time when more than 1.3 million workers left Britain in one year, due to the Corona epidemic and Brexit, which created a huge vacuum in the market.

According to the National Statistics Agency, the number of jobs available in the market during the month of July reached about one million, a record number not recorded in years.

Among the sectors that are experiencing a real crisis is the commercial transport sector, as the labor market in this sector needs more than 100,000 truck drivers.

By some estimates, this number will need more than 18 months to meet, which has made the salaries of drivers of major commercial trucks skyrocket, sometimes reaching $10,000 per month.

The same applies to the butchery sector. According to the estimates of the National Butchery Association, livestock owners will have to burn or kill 100,000 heads of livestock because there is no one to slaughter, skin and chop.

The Society of British Industry does not expect a solution soon to this crisis, but rather gave a pessimistic forecast saying that this crisis will continue for at least two years, if the government does not take any measures to overcome this problem.

More than 1.3 million workers left Britain within one year due to the Corona epidemic and Brexit (Reuters)

What are the reasons?

Experts explain the phenomenon of labor shortages in Britain, despite the difficult conditions the world is going through due to the epidemic, with what they call “rapid opening”, and by this they mean that immediately after the government’s decision to open the country in mid-July, demand rose and consumption increased, but on the other hand there is More than 1.3 million workers left the country and did not return, in addition to 1.2 million workers who are still benefiting from the government support program (the state pays 80% of wages on behalf of the employer provided that the worker is not laid off) until the end of this September, which means that about 2.5 million workers are currently out of the market.

The second factor is Brexit, which prompted European workers who used to work in “low-skill” professions to leave the country, and a large number of them are no longer able to return because they need a visa to enter the country in order to work, especially truck drivers.

However, it appears that the performance of the British labor market is good, as the unemployment rate is currently at 4.8%, and the central bank expects it to rise to 5.5% with the end of the government program to support jobs by the end of September, which is a much better number than previous expectations of the central bank that said that The unemployment rate may reach 12% due to the epidemic.

price flames

The British government is facing great pressure to find a solution to this crisis, which will end up in the pocket of the consumer, because the wages of workers - in the sectors that suffer from shortages - rose on average between 8 to 10%, which means higher prices and higher inflation.

According to some forecasts, food prices will rise by 5% by the fall, with expectations of a shortage or absence of some items that are in great demand during Christmas.

For example, the prices of tomatoes doubled within one year, while the prices of vegetable oils recorded the highest rate of increase in more than 30 years.

British traders and manufacturers are pressing the government to issue what they called a "corona recovery visa" that allows European workers to return to the British market without being stopped at the border or obtaining a work visa, in order to overcome the shortage.

On the other hand, the British government calculates that these available jobs can go to the British who are currently benefiting from the job support program, and if they return to the labor market, they will cover all this shortage;

Thus, the unemployment rate will be controlled.

But critics say the market will not tolerate further disruption to the production chain.