Economic growth in the United Kingdom depends on the strength of the labor force. But Brexit, demographic declines, and long-term health issues threaten that strength.
Even though the British economy is in a downturn, the labor market might hold up better this time than during the typical recession, especially since there is still a shortage of blue-collar jobs due to Brexit.
It’s been a turbulent week for the United Kingdom. Puzzling financial policy and political drama latched onto an ongoing energy crisis and a tight labour market, triggering volatility not seen in at least 20 years.
Demand for workers is about 60% above its pre-COVID level. The paradox is that while the U.K. labour market is extremely ‘tight’ – a good thing for workers – those same workers are suffering from a cost of living crisis.