United Kingdom | A new era of weaker labour supply growth

After a decade of consistently strong growth, UK labour supply has slumped since the onset of the pandemic and we expect only a partial recovery this year. The drop in labour supply is due to a combination of cyclical and structural factors, primarily virtually zero net inward migration due to the pandemic and a hiatus in the rise in the state pension age.

What you will learn:

Though immigration should rise now that travel restrictions have eased, strict post-Brexit rules mean it’s unlikely to return to pre-pandemic levels.
Participation rates, for males particularly, have also dropped.
But we think this will quickly reverse given that the strong labour market recovery has created plenty of job opportunities and boosted wage growth.

Topics: United Kingdom, Europe, Economic outlook, Wages, Labour markets, Migration, Recovery, Pandemic, Covid19, Outlook, Travel restrictions, Covid restrictions, Omicron, England