Staff shortages have become a nuisance for businesses and consumers alike. Industries are trying to recruit in a hurry, only to discover that potential employees have moved on to other jobs
Save time by listening to our audio articles as you multitaskBetween March and May the number of vacancies in Britain reached a record 1.3m. The tight labour market is affecting many industries. Figures from Indeed, a recruitment platform, reveal a 72% increase in postings within the food-preparation and service sector since February 2020 and a doubling in warehouse positions.
A shortage of workers is a nicer problem for Britain to have than hordes of unemployed people hunting for work. What is alarming is that many people have disappeared from the labour force. Had pre-pandemic trends continued, there would have been around 1m more 16- to 64-year-olds employed between February and April than there actually were. Tony Wilson of the Institute for Employment Studies, a research outfit, estimates that a shortage of people explains only about a quarter of the decline.
The shortages problem may be temporary. Future cohorts of older workers will not have the same opportunity to step back and re-evaluate their work-life balance while on furlough. Today’s students will eventually graduate.
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