IoD: We need a systemic response, not a sticking plaster, to solve labour shortages

Responding to comments by Business Secretary Kwasi Kwarteng about labour shortages being due to the UK transitioning away from "the low-wage, high-immigration model", Kitty Ussher, Chief Economist at the Institute of Directors, said:

“The labour shortages we are seeing are not only in the low wage sectors. More of our members report shortages amongst managers, professions and skilled workers than in the sectors that are traditionally lower paid. What’s more, around two thirds of our members who report shortages say that this is because of long-term skill shortages; a higher proportion than those who attribute the cause to a lack of employees from the EU or factors related to the pandemic. What appears to be happening is that as the economy readjusts and reopens, some fundamental weaknesses are being exposed that are compounded by the shorter-term issues.

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