Despite wages in the UK growing, the region’s workforce has still dwindled by 2% according to figures released this week.
During the first quarter of the year, the UK saw 11 million less working hours compared to the beginning of 2020. As a result, inflation has climbed much to the surprise of Bank of England policy makers.
Governor Andrew Bailey testified that he expected professionals to return to the workforce as the country’s economy continued to recover.
While this isn’t out of the realm of possibility, the increased cost of living, growing retirement rates, and growing demand for flexibility may keep the workforce down for the time being.
Also contributing to the loss in workers was Brexit, which saw Britain lose several European Union employees. Between January and March, the Office for National Statistics showed that there were 110,000 less EU employees in the UK compared to the end of 2019.
“While long-term unemployment is falling, there are no signs that the pandemic-induced rise in inactivity is reversing,” according to the think tank Resolution Foundation.
