Britain’s workforce crisis deepens as one in five employers struggle to fill roles
The Bank of England said earlier this month that Britain’s workforce will be “permanently smaller” as a result of the pandemic, citing “increasing detachment” from workers.
A greater number of baby boomers reaching retirement age means that the number of Britons in the workforce was already “trending down”, the Bank said.
David Miles, a leading economist at the OBR, said last week that the Prime Minister should slash the benefits bill and get more people working to reduce Britain’s debts, rather than relying on immigration.
The Imperial College professor said it was “much less clear that persistently high levels of net immigration to boost the labour force can generate sustained fiscal improvements”.
The population of the UK is expected to hit 70m by the end of 2026, with net migration standing at 672,000 for the 12 months to June 2023.
In an effort to reduce the flow of migrants, the Government is raising the salary threshold for skilled workers to come to the UK from £26,200 to £38,700.
A Government spokesman said: “There are an extra four million people in work since 2010, and we are determined to help employers recruit talent and get businesses growing.
“In the last Budget, we committed £3.5bn to get even more people into the workplace, and through our Back to Work Plan we will support over a million people, including those with disabilities and long-term health conditions, to break down barriers to start and stay in work.”