Labour and skills shortages risk significant damage to UK economy

(2 minutes to read)

REC: ‘Only growth can create the environment to maintain public services and a low tax rate – no government can afford to leave £30bn on the shelf’.

New research has shown that if labour and skills shortages are not addressed, it could cost the UK economy £30 billion every year.

The Recruitment and Employment Confederation (REC) say that these shortages will reduce our productivity and ability to invest, grow and raise wages sustainably.

Neil Carberry, Chief Executive of the REC, explained, “We haven’t had to look far for evidence that labour shortages have the power to bring segments of the UK economy to their knees recently.

“From chaos at airports to driver shortages and NHS waiting lists growing – the underlying issue of labour shortages has burst out into the open. The modelling we are launching today shows the damage that could be done if we don’t solve these shortages – more than £30 billion in lost potential every year, as well as lower productivity, lower wage growth and rising inflation.

“Only growth can create the environment to maintain public services and a low tax rate – no government can afford to leave £30bn on the shelf.”

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Carberry added, “But neither government nor business can do this alone. It’s time for both to get the ‘people stuff’ right and get serious about long-term workforce thinking. For companies, that means prioritising workforce planning at the highest level, investing in a skills pipeline – co-operating with other firms and local education providers to do it – and treating recruitment with the importance it deserves. An approach to staffing that only focuses on cost is a highway to nowhere.

“For its part, government needs to create the environment for businesses to be able to invest and thrive – with a long-term workforce strategy that includes skills, immigration, good local transport links and robust support for people who aren’t currently working.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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By Published on 01st August 2022

limited, recruiters, Contractors

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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