[UNITED KINGDOM – SEPTEMBER 2022] Despite an increase of 0.2 per cent from May to July 2022, the employment rate in the United Kingdom remains below pre-pandemic levels. The UK labour market remains tight despite the increase compared to the previous quarter.

Job vacancies also remain high even with an increase in full-time employees. August saw an increase of around 71,000 payrolled employees, reaching 29.7 million. Similarly, the May to July 2022 unemployment rate decreased to 3.6 per cent or 0.2 per cent lower in the quarter.

Manufacturing Sector
Even though the services and construction sectors saw increases in employee jobs, the manufacturing industry saw a decline of 1,560 jobs over the quarter. The UK is experiencing the same situation as the United States, facing a shortfall of skilled labour of 2.1 million by 2030.

Many firms are already experiencing labour shortages. These shortages affected their ability to meet demand in the market, forcing some firms to turn down business. The situation is limiting growth and affecting business confidence. Demand for skilled labour is also driving wage costs up.

Reasons for Labour Shortages
Different issues led to labour shortages in the manufacturing sector.

Low Wages
One reason for the shortage is the low wages offered in the manufacturing sector. Many workers demand higher wages, as salary is often the strongest motivator for changing jobs.

Negative Perception
The industry's negative perception also contributes to the labour shortage. Many people view manufacturing jobs as being unsafe, low-paying and monotonous. This is particularly true for the younger generations, who are often unaware of the technological advances in the industry.

Demand for Tech Skills
The industry has shifted towards automation. Machines are now doing many of the tasks that workers used to complete manually. This has left businesses struggling to acquire the skills needed to operate these new technologies.

Effects of the Pandemic
The pandemic is a key reason that has caused an ongoing labour shortage in this industry. Many workers have left or shifted to different industries due to the pandemic. Many workers are also concerned about their safety in the workplace. They also don't want to risk exposure to the virus.

About Mirbly
Mirbly is a company that offers mandatory business training. The training can help prepare employees for life-threatening situations that may occur at work. It has courses designed for the manufacturing sector, including basic life support, health and safety courses, and first aid at work.

Visit www.mirbly.com for more information.