More than 50 % of the UK business scene is greatly affected by labour shortages. This skill shortage has been developing in the nation since pre-pandemic. The lack of tradesmen has greatly threatened the UK’s economy.
Additionally, a national skill shortage is expected by 2030. Moreover, it is estimated that the nation is set to lose 98 billion pounds by 2030 due to the shortage of skilled tradespeople. The craftsmen, plumbers, construction workers, decorators, painters, and other vocational sectors have been impacted the most.
As a result, the crisis has left companies battling to acquire the best talent. However, the question remains: What is causing the skill shortage crisis, and how has it affected the nation? Read on to find all the answers.
Driving Factors of UK’s Skill Shortages
Researchers and experts have thoroughly researched to find the underlying factors that caused the skill shortage. Here are some of the reasons that drove the UK’s labour shortage issue.
Ageing Workforce and Retirement
The ageing workforce in the tradesmen industry is one key contributing factor to the skill shortage crisis in the UK. While a major segment of these tradesmen is nearing retirement age, there is a shortage of young labour to replace them. According to the Federation of Master Builders, over 22 % of tradesmen are middle-aged, while only 12 % are under thirty. Hence, this imbalance highlights the grave issue of insufficient new and young replacements.
Lack of Interest and Talent
In the digital age, youth are more interested in pursuing higher degrees than in undertaking vocational training. Conversely, they have created a perception that educational qualifications matter more than practical skills, which has led to the decline of labour in the trade industry.
Brexit and Immigration Laws
Brexit and immigration policies also mitigated the skill shortages in the UK. Following the nation’s departure from the European Union, stricter immigration laws were implemented, reducing European employment opportunities.
As a result, it has become difficult for skilled workers to fill these tradesmen positions. Stricter immigration laws have made the UK work visa incredibly difficult to get.
Lack of Vocational Training
Insufficient focus on vocational training and the lack of apprenticeship programs have also contributed to the crisis.
Additionally, while there are a few training and apprenticeship programs available for aspiring tradesmen, the lack of funding makes it difficult for these programs to continue.
Impact of the Skill Shortages
The skill shortages have profound implications for the nation’s overall economy. The immediate impact of the crisis is the increased costs of construction and maintenance projects.
With only a few tradesmen available, the overall costs of any project rise. Additionally, the rise of demand and the lack of skilled resources disrupt the balance, resulting in high project prices.
Moreover, owing to the lack of tradesmen, there is a delay in projects. This, in turn, affects the productivity and economic growth of the country.
The housing sector is greatly hit by the crisis. Additionally, it is reported that the country is facing a major housing crisis due to the lack of affordable accommodation. The skill shortage promotes this crisis as construction businesses struggle to build new homes.
Moreover, this leads to a spike in home prices and delays any governmental plan to provide cheap accommodation.
Furthermore, the shortage of skilled tradesmen has affected the quality of work. Companies are now afraid of hiring unskilled labourers to fill positions. This has led to safety concerns, increased maintenance costs, and substandard work.
The skill shortage has also affected the smooth functioning of essential services. This means that services like electrical work, plumbing, and other maintenance services have faced a hard hit. These services are delayed with long wait times due to the shortage of these tradesmen.
Wrapping Up
Skilled labour shortages continue to plague the UK’s economic sector, even in 2024. Moreover, this has impacted multiple sectors across the nation. Construction, hospitality, and healthcare have been the most affected sectors.
As a result, comprehensive measures must be undertaken to address these challenges. Some of these measures could include reviewing immigration regulations and investing in effective vocational training. By understanding the driving factors that led to such an economic crisis and taking effective steps, the UK can reverse the crisis.
