Wednesday, October 27, 2021
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HomeBusiness7 Sectors are Facing Labor Crisis due to Covid-19 and Post-Brexit Scenario...

7 Sectors are Facing Labor Crisis due to Covid-19 and Post-Brexit Scenario in UK.

Business Suffering Due to Shortage of Labor in UK

The United Kingdom is facing a severe shortage of labor since 1997. A video is viral on social media in which people are complaining that Mcdonald’s is not serving them milkshakes, on the other hand, meat processors are asking ministers to let them use prisoners and the government is granting a special visa for drivers. Here are the 7 sectors which are facing challenges in England due to the shortage of labor Covid-19 and Post-Brexit Scenario in UK.

1.Food Chains

McDonald’s runs out of milkshakes because the shortage of supply chain has been badly affected due to drivers shortage and 1,250 outlets of famous American fast-food brand has been closed in England, Scotland and Wales. People on social media are blaming the Conservative Party and its Brexit policy, not the pandemic.

Not only, Mcdonald’s, but many other food chains in Britain are also facing the same crisis famous company Iceland boss has warned about this crisis, Christmas is at risk.

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2. Fruit and Vegetable Business

Shane Brennan, the chief executive of the Cold Chain Federation.
Shane Brennan, the chief executive of the Cold Chain Federation.

Every coming day is making the situation worse. Consumers. producers and traders all are suffering especially in perishable goods like fruits and vegetables. Empty shelves have been spotted countrywide.

The problem is set to get worse according to industry expert Shane Brennan, the chief executive of the Cold Chain Federation.

Empty shelves have been spotted countrywide.
Empty Shelves have been spotted countrywide.

Talking to British media he said “It’s going to get worse before it gets better. Structural challenges remain and they’ll remain as long as there’s no intervention from the government.”

3. Transport 

Alex Veitch, general manager of public policy at Logistics UK
Alex Veitch, general manager of public policy at Logistics UK

The transport sector is the most affected sector of this crisis. This is the actual snowball effect that is looming all whatever is coming in its way although the UK govt has planned to grant 10 thousand EU lorry visas.

The crisis started last year when thousands of European drivers left the UK because of Brexit Alex Veitch, General Manager of public policy at Logistics UK said “While we wait for new recruits to complete their training, which can take up to nine months, the logical solution would be to introduce a temporary visa scheme to keep the vehicles moving. After all, there is no point in picking and packing food if there is no one available to move it to buyers.”

4. Agriculture production

Farm income has a fall by 20% during the last economic year ,in UK
Farm income has fallen by 20% during the last economic year, in the UK

After the finalization of the Brexit deal, the government of UK has introduced a new visa scheme in 2019 named The Seasonal Workers Pilot (SWP) with an annual quota of 2,500 migrants, which has increased to 30,000 in 2021. But this scheme’s incentives were lower than expectations. According to official figures, farm income has a fall by 20% during the last economic year which is bringing more hardships for small farmers as close to a billion pounds has been wiped out from their economy.

5.Logistics

The sector which is top in the ranking of crisis due to transport crisis is Logistics. Experts say “UK logistics towards an unprecedented crisis” During the month of July UK national road consignment network operator Pall-Ex Group asked the UK government to urgently help attenuate the crisis. Another major player in the field The pallet network of 160 independent haulage firms across the UK said three quarters (74%) of its members say that they are the victim of driver shortages every single day, with 100% saying that the circumstances were causing a loss in their businesses.

Paul Sanders, chairman of the Association of Pallet Networks (APN) also wrote it in an open letter to Transport
Paul Sanders, chairman of the Association of Pallet Networks (APN) also wrote it in an open letter to Transport

The stakes holders call the situation a “perfect storm” Paul Sanders, chairman of the Association of Pallet Networks (APN) also wrote it in an open letter to Transport Secretary Grant Shapps.

6.Hospitalty

 The Covid-19 pandemic affected the hospitality industry highest level since the record began.
The Covid-19 pandemic affected the hospitality industry highest level since the record began.

The Covid-19 pandemic affected the hospitality industry badly around the world but the UK is facing the worst situation at its highest level since the record began.

According to Industry’s representatives, one in five workers have left the field during the pandemic, and Brexit has made the crisis deepen.

employees were already leaving the job even before the first lockdown
employees were already leaving the job even before the first lockdown

The new figures from the Office for National Statistics show that job employees were already leaving the job even before the first lockdown in March 2020.

According to the recent record, there were 102,000 vacancies in the sector during the quarter from April to June 2021 – it is a jump of 12.1% compared with the 91,000 figure for the same period in 2019.

7. Construction

Jason Tema - Director - Clearview Developments
Jason Tema – Director – Clearview Developments

According to the data of the office for the national statistics ( ONS ), the non-British resident population declined in-country through June 2020, with the biggest decrease among citizens of EU8 countries at -135,000 people.

These groups belong from Poland, Estonia, and Slovenia, which make up 26 percent of the UK’s construction sector.

In his recent interview Jason Tema, director of property development firm Clearview Developments, demanded the government for intervention to avoid further staff shortages.

non-British resident population declined in-country through June 2020
the non-British resident population declined in-country through June 2020

“Whilst the departure of EU-born construction professionals might only marginally open up job opportunities for some British workers, a drop of qualified industry staff of this scale will inevitably lead to severe staff shortages,”

“As a result, project completions could face major delays. It’s yet another hurdle for the UK’s construction sector to overcome at a time when the industry is already behind the target to build new private market as well as affordable homes,” he added.

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