UK Workers Face Return To 2006 Real-Term Wages In Highly Challenging 2023
UK Workers Face Return To 2006 Real-Term Wages In Highly Challenging 2023

In Recent Months,

Labor market challenges in the UK have dominated headlines. The headlines include ‘How can Britain solve its post-Brexit labor shortage?, ‘UK lags behind developed nations in employment recovery post-Covid’, How can Britain overcome its labor shortage post-Brexit? Looking for foreign workers is a priority for Brexit-backed Next.

A forecast finds that the UK is on course to be a less happy country by 2023, with wages falling back to 2006 levels and house prices falling. Based on PwC’s analysis, British workers’ pay will fall back to 2006 levels in 2023 after inflation is taken into account. CNN reported that PwC expects real wages to fall by 3% in 2022 and another 2% in 2023, taking inflation into account.

While Inflation Has Reached Double Digits,

Wages in Britain have stagnated, resulting in the worst cost-of-living crisis in decades. As a result, there have been widespread strikes across the UK economy, including in train stations, schools, nursing homes, and hospitals. Some of the United Kingdom’s busiest airports, including Heathrow and Gatwick in London, will be affected by eight days of passport officers’ strikes starting Friday.

According to the Government,

Border Force will be supported by the military, but travelers can expect delays and disruptions when they arrive in the country. PwC’s senior economist, Barret Kupelian said in a statement, “2022 has clearly been a challenging year for the UK economy, and it’s not surprising that these headwinds will continue through 2023.”

Despite The Report’s Shortcomings,

It offered some hope. It is anticipated that over 300,000 UK workers could join the labor market by 2023, contributing to the reduction of economic inactivity and addressing staff shortages in highly skilled sectors. The PwC report noted that immigration could boost GDP growth by 1% “despite the whole economy contracting” by directly contributing £19 billion ($23 billion) to the economy.

PwC Economist Jake Finney Said,

The UK remains a popular destination for workers despite a contracting economy. In 2022, UK immigration levels reached an all-time high of 1.1 million, with 140,000 Ukrainian’s, Afghans, and Hong Kong residents resettled as part of resettlement programs.

It Has Been Slower Than Developed Nations,

To recover from the Covid recession, despite record immigration. As of November, there were just under 1.2 million vacancies, a decrease from a record 1.3 million earlier in the year. Agricultural, hospitality, and retail industries have seen acute labor shortages.

House of Lords Economic Affairs Committee research published this week concluded that early retirements are the most significant reason for the UK’s low labor force participation rate. As a result of an aging UK population, long-term sickness is on the rise, as is a lower number of EU migrants after Brexit. “The UK economy faces serious challenges as a result of the rise in inactivity. As a result of the current labor shortage, inflation will increase in the near term, growth will be damaged in the near term, and revenues to fund public services will decrease, despite the continuing demand for those services,” the committee said.

Over the Next Two Years,

The UK’s inflation is expected to gradually return to target following the peak in October, according to PwC’s Kupelian.

The Number of Job Openings is Declining:

Over the same time period last year (6.35 million job postings), online job postings in the UK dropped by nearly one million (-15.3%) from 5.38 million to 5.39 million. Employers across industries may be hesitant to hire due to the looming economic recession, along with rising inflation, interest rates, and energy prices. As wages fall below those in France, divorces and unhappiness will increase in the UK next year Next year, British workers will earn less than French workers, leading to an increase in divorce rates and unhappiness at their highest levels since 1971.

While Most French Workers Work Fewer Hours,

PwC predicts that real wages will overtake their British counterparts by next year, as real wages in Britain will fall back to levels last seen in 2006. With living standards in decline, Brits are likely to be unhappiest they’ve ever been, and after the Government made it easier for married couples to separate formally, the Big Four consultancy firm predicts a surge in marriage breakdowns next year.

In What Ways Does A Labor Shortage And A Skills Shortage Affect The Economy?

Labor shortages (including digital skills) have been discussed vigorously as threats to the UK’s economic sustainability in the long term. From 2024 to 2027, such shortages could cost real GDP $30-39 billion annually, according to a report by the Recruitment and Employment Federation.

Can You Tell Me What Skills Employers Are Looking For?

There is a growing trend among employers to seek candidates with technical skills applicable to specific occupations and sectors along with transversal skills (such as communication, teamwork, management, and leadership abilities). It is interesting to note that, according to the graph below, communication and management skills figure in 28.2% and 23.2% of all job postings in the West Midlands, respectively. Approximately one percent more people have these skills today than in 2021. In addition, customers need workers with customer service skills, assertiveness, problem-solving skills, engineering skills, and data skills.

CIPD assignment help can help you upgrade your skills and get the job you want if you are living in the UK. As CIPD services offers CIPD level 7 assignment help across the UK, there is no shame in seeking help from them.

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