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.”