Does UK need workers?

The most recent statistics indicate that there are only 1.45 jobless persons for every job opportunity, which is a record low. One reason that contributes to the labor shortages is the decline in the number of migrant workers.

According to recent statistics, the United Kingdom boasts a record amount of job openings while also having the lowest ever percentage of jobless persons for each one.

According to the figures on the labor market that were provided by the Office for National Statistics on Tuesday, there were 1.1 million open positions during the period of July through September. And as of the month of August, there were 1.5 million individuals looking for work, making the ratio of available jobs to jobless persons 1.45, which was the lowest it had ever been. The conclusion of the furlough is not taken into consideration in this time period, despite the fact that it is expected to have a major effect on the unemployment rate.

According to the findings of an investigation conducted by The Institute for Employment Studies, between a quarter and a third of the labor shortages may be explained by decreasing migration.

According to estimates provided by IES, the number of persons now participating in the labor market in the UK is around 900,000 people less than what was anticipated on the basis of tendencies that existed before to the economic crisis.

According to Yael Selfin, the chief UK economist at KPMG, "The recovery is testing the capability of the economy to adapt to a new post-pandemic environment, a challenge made more difficult by the decreased availability of foreign labor."

Even while employers went on recruiting sprees in September, resulting in 821,000 individuals beginning new positions, and although this may be good news for the million employees who came off furlough, it is not enough to address the labor shortages that are impacting the whole British economy.

"The conclusion of the furlough program at the end of the previous month may have a momentary impact on the headline unemployment rate," concluded Selfin.

It has been widely reported that there is a scarcity of employees in some industries, such as for HGV drivers; nevertheless, recent data demonstrates that the labor market as a whole is experiencing difficulties as a result of a lack of people.

Tony Wilson, director of the IES, said that "these shortages are dragging up our economic recovery and will not correct themselves by simply exhorting companies to pay employees more."

People's imaginations have been captured by reports of pay increases such as £30 an hour to harvest broccoli or £60,000 per year as an HGV driver. These reports have spurred discussions on whether or not the minimum wage should be raised.

However, the labor deficit in the UK won't be solved by just raising pay.

The number of older individuals and younger people leaving the labor force is increasing because a growing number of people are opting to continue their education or retire at an earlier age. Alterations to traditional modes of employment have both directly and indirectly encouraged many people to pursue self-employment or launch their own companies.

The statistics present a picture of huge declines in labor force participation by older individuals and young people, as well as expanding long-term unemployment for those with disabilities and those who have health concerns.

According to Wilson, "we need to do far better at helping some of the six million people who are outside the labor market because of ill health, caring, or full-time study to get back into work." "We need to do far better at helping some of the six million people who are outside the labor market because of ill health,"

Recently, the chancellor, Rishi Sunak, revealed a strategy for jobs that would cost £500 million and would concentrate on helping those who get universal credit find employment.

The plan has been lauded for its ability to increase opportunities for both older and younger workers. However, the provisions of the plan do not extend to those people who are the furthest removed from the labor market and face obstacles to entering it, such as mental illness or the responsibility of caring for others or children.

Unions have claimed that the government's proposals to allow employees to request flexible working arrangements as soon as they start a new job do not go far enough in mandating compliance from employers. However, the government hopes that these proposals will enable more people to enter the workforce.

Although the unemployment rate as a whole has fallen as compared to the same point in time the previous year, we are still seeing the aftereffects of the epidemic as long-term unemployment has continued to rise.

Wilson issued a plea to the government, urging them to take "immediate action" in order to "increase assistance for older employees, parents, and handicapped people in particular." According to Wilson, "we've spent less on employment support in the previous year than the furlough program costed in a single week."

He continued by saying, "Firms will need to do more too, notably by changing how they promote and recruit, but also in attempting to meet people half way on issues pertaining to job security, flexibility, and workplace training and assistance."