UK companies struggle to find workers despite wage increases

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Eight in ten UK companies struggled to find workers last month despite rising wages for many, according to a survey which shows labor shortages are intensifying.

The proportion was up sharply from three months earlier, with the squeeze most pronounced in the restaurant and hospitality sectors where 92% of companies that tried to recruit reported struggling, the people said on Wednesday. British chambers of commerce.

“It is clear that staff shortages are worsening, impacting the recovery and growth of manufacturers and service companies,” said Jane Gratton, head of people policy at the lobby group. enterprises. Unless the government acts, businesses face “extreme difficulty in meeting demand, and consumers will see further reductions in the goods and services available to them as we move into winter.”

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As a sign of the seriousness of the problem, many companies said they had raised wages and still failed to attract workers, according to the survey, which polled more than 5,600 companies between Aug. 23 and Sept. 13.

The combination of staff shortages and supply chain disruptions are driving up prices, worsening living standards and increasing pressure on the Bank of England to raise interest rates to keep inflation under control.

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The problem mirrors both the pandemic and Brexit, with companies finding there are now far fewer foreign nationals to help fill a record number of vacancies. The BCC urged the government to deal with the crisis by issuing more short-term visas for industries facing severe shortages.

Photograph: Commuters wait for a train on a platform at Clapham Junction station in London on Monday, October 11, 2021. Two Bank of England officials have decided to reinforce signals of an impending UK interest rate hike to curb inflation, with a telling households to prepare for an increase “significantly sooner” than previously thought. Photo credit: Chris Ratcliffe / Bloomberg

Copyright 2021 Bloomberg.

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