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A labor shortage can cost the UK economy £ 30 billion ($ 36 billion) each year.
Shazia Ejaz, campaign director for Recruitment and Employment Confederation (REC), said there was an “extreme lack of skills” in the UK, companies across the country struggling to hire staff, and at risk of “serious damage.” Said. Economy.
“There was Brexit and COVID, which meant that many people from Europe had left and never returned,” Ejaz said of the reason for the shortage.
She also added that many people have left the market, for example, older workers who have decided to retire because they have property in their homes. At the end of youth, there are people who may continue to be educated.
Mr Ejazz said the government has many different departments working on this issue, but they need to be together. For example, the Ministry of Education supports skills, the Department for Work and Pensions (DWP) seeks to bring people back to work, and the Ministry of Interior is in charge of immigration.
Immigrants
Ejaz adds: [from the current two or three]Such a practical thing. “
Organizations like Migration Watch UK need employers to provide UK workers with more opportunities for better skill training, and employers may provide training or raise wages for UK workers. It claims that it is easy to rely on foreign workers.
It pointed out many organizations such as the Policy Research Center that made recommendations for improving technology education.
In 2018, the report predicted a vacancy in skilled transactions Rise by 2022 due to lack of skills..
University vocational schools and vocational schools aimed at providing this type of education to children aged 14 to 19 have become “a dump for children struggling in mainstream schools.” However, he writes that existing vocational schools and vocational schools are on the verge of collapse. Almost one-third of those that have opened since 2011 are already closed.
REC predicts that the UK economy will shrink 1.2-1.6% by 2027 as demand in the economy increases by 10% and the labor market is constrained by shortages. did.
“This could cost the economy somewhere between £ 30bn and £ 39bn each year,” REC wrote, “almost the entire current defense budget or two Elizabeth lines each year. Equivalent to losing. “
Candidate market
“We didn’t have to look far for evidence that labor shortages have the power to give in to parts of the UK economy these days,” said Neil Carbury, CEO of REC.
REC also called for redesigning apprenticeship taxes and designing local transportation to support employment.
“From airport turmoil to driver shortages to the growing NHS waiting list, the fundamental problem of labor shortages has skyrocketed,” he added.
“Modeling released today shows the damage that can occur if these shortfalls are not resolved, the loss of more than £ 30 billion of potential each year, reduced productivity, lower wage growth, and higher inflation. I will. ” Carberry.
He said companies need to prioritize workforce planning, invest in skills, and focus on hiring.
“The approach to staffing that focuses solely on cost is a highway that goes nowhere,” he said.
Due to lack of skills, the power of the market allows some workers to order higher salaries.
“More demand makes it a candidate market,” Ejaz said. “But it’s not sustainable,” she added.
The Epoch Times contacted the UK Government for comment.
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Owen Evans is a UK-based journalist who covers stories from a wide range of countries with a particular interest in civil liberties and free speech.
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