Which UK job sectors are understaffed in 2023?

 

What factors have caused the labour shortage in the UK?

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It’s easy to point to Brexit and the pandemic as the only reasons behind the UK labour shortage but the situation is a little more complicated than that. While Brexit and the pandemic have played their part, it is the combination of these factors and their resulting effects that have led to the current labour shortage.

These factors include:

• a decline in the UK workforce with economic inactivity, that is, people who are not working and not seeking employment, rising to over 2.5 million. Most people who have left the workforce have retired, often early, or feel unable to work because of ill health. One likely factor in this increasing occurrence of ill health is long COVID.
• Workers are demanding higher wages and better working conditions since the pandemic. They expect more from their employers. This is reflected in the Great Resignation trend that began in 2021 and the cross industry strikes in 2022 and early 2023.
• With Brexit’s curb on free movement, there have been lower levels of migration into the UK. While businesses may sponsor foreign individuals to work in the UK, this is restricted to the UK government’s list of eligible occupations which are generally senior or specialist roles, such as engineer, scientist, or manager.
• The combination of Brexit and the pandemic forced many foreign workers to leave the UK and return to their home country.
• During the pandemic, training and registration programmes were halted, for instance, HGV drivers. While training, registration, and hiring have re-started, many business sectors are now feeling the negative effects of the resulting backlogs.

 

What does the labour shortage mean for UK jobseekers?

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The obvious effect of the UK labour shortages for jobseekers is that there are more vacancies to apply for. However, levels of labour shortage vary between business sectors and are higher in lower paid jobs so while there may be more vacancies, it doesn’t mean that they will be vacancies that are suitable for your experience or skillset.

As businesses face high competition for suitable candidates, increased salaries and improved benefit packages are likely to be used to attract applicants. This could also include more opportunities to upskill and increased availability of flexible working opportunities.

One key example is that of Tesco who offered a £1,000 bonus to HGV drivers.

 

Which UK job sectors are understaffed in 2023?

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While this sounds like good news for jobseekers, labour shortages aren’t equal across all business sectors or job titles. Here are the nine areas that are most likely to be affected by a lack of staff in 2023.

  Agriculture and food and drink production

One of the main drivers for labour shortage within the agriculture and food and drink production sectors is Brexit and its restriction on freedom of movement. In particular, this sector will suffer from the lack of foreign seasonal workers.

Having said that, the majority of workers who left this sector during and since the pandemic are British. One factor that could account for this is that 40% of the workforce in this area are over 45 years old. More workers are retiring than are entering this sector.

  Aviation and airports

This includes pilots, air crew, and airport staff. Lockdown restrictions meant that many employees in this sector were laid off or furloughed during the pandemic, but not all of those staff have decided to return to their jobs. This sector specifically faces a lack of qualified pilots because training programmes were paused during the pandemic.

Onboarding in this sector has always been a lengthy process because of the need for security and health checks. This process has been further lengthened by the backlog of vacancies and applications.

Now that lockdown restrictions have been lifted, the demand for air travel, both for holiday and business purposes, has increased beyond the staffing capabilities of many UK airports.

  Construction

The labour shortage in the UK construction sector has largely been caused by two factors. First, with around a fifth of employees in this sector aged over 45, more workers are retiring than are entering the industry. The other factor is the construction sector’s reliance on foreign workers who are now unable or unwilling to work in the UK.

  Health and social care

This sector already had a labour shortage of almost 100,000 workers before the appearance of COVID. The stress and pressure of working through the pandemic pushed many healthcare professionals and social care workers into burnout and as a result, to leave the profession.

The cost of living crisis has persuaded many more workers in this sector to leave because of low pay and the poor quality of working conditions.

  Hospitality, food service, and accommodation

The COVID lockdown meant the closure of many businesses in this sector, even if only on a temporary basis. This led to staff being furloughed or in some cases, laid off altogether. There has been a reluctance to return to this sector without the provision of improved pay, benefits, and conditions.

Another factor in the labour shortage in this sector is the reduction in the number of part time roles.

  Manufacturing

There was already a labour shortage in this sector pre COVID, but the pandemic and its lockdowns worsened the situation. The current labour shortage is also caused by:

• worker worries over job stability and health and safety
• a lack of flexible working options
• a reputation for low salary, long hours, and worse working conditions than in many other industries

The manufacturing sector has fully embraced automation and new advanced technologies, but both require that new job roles be created and that staff are trained to use these new technologies. This process is still struggling to catch up with demand.

  Science and technology (STEM)

Times of crisis drive innovation but there is a lack of skilled individuals working in this sector to develop these paths of innovation.

Specifically in engineering, there is a shortfall of around 59,000 engineers each year in the UK. Reasons for this shortfall include a decline in engineering apprenticeships and more engineers retiring than entering the industry.

The UK government’s drive to achieve net zero by 2050 will increase the demand for STEM workers.

  Transport and haulage

There is an estimated shortage of 100,000 HGV drivers. This has been caused by the number of foreign drivers who left the UK because of Brexit and the pandemic and the pause in HGV driver testing during the pandemic.

Like many business sectors, transport and haulage has also been affected by an aging workforce with more workers leaving the sector than are entering it.

  Wholesale and retail

The pandemic caused major upheaval in the wholesale and retail sector as lockdowns reduced footfall to physical shops and increased online shopping. A number of stores, including well known names such as Debenhams, struggled, resulting in closures or buyouts. Several of these buyouts meant that high street brands like Top Shop and Miss Selfridge moved to a fully online format.

Vacancies in wholesale and retail have grown to beyond levels seen before the pandemic. Labour shortages in this sector are driven by a demand for job security from workers and a lack of career advancement opportunities.

 

Wrapping it up

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All UK business sectors have been affected by labour shortages since the pandemic and Brexit. However, those shortages aren’t equal across sectors and job titles. Overall, this will prove to the advantage of jobseekers and employees alike as employers are forced to improve their compensation packages and working conditions to attract the right candidates and retain their existing employees.