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Wednesday, October 7, 2026

Brexit exacerbated UK labour shortages, but causes are 'more complex', research says - People Management Magazine

While early evidence finds employers are adjusting to the challenges, experts call for more strategic approaches and government help to cope with the issue

The end of free movement following Brexit is just one of the challenges faced by UK recruiters, as it “negatively impacted” the labour market, a report has found.

The policy brief report, The end of free movement and the low-wage labour force in the UK, conducted by ReWAGE and the Migration Observatory at Oxford University, found that while Brexit exacerbated the labour market problems in the UK, it was “by no means the only reason for the shortages”.

It said that while employers have faced recruiting difficulties and high vacancy rates across various occupations, “the pandemic, international sector-specific labour shortages, and an increase in early retirement” had been more important factors than Brexit.

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The report indicated that inactivity among people over the age of 50 was the most important contributor to the decrease in the size of the workforce, with numbers much higher than what might have been expected based on pre-pandemic trends.

It stated that the rise in vacancies in the UK was highest in jobs that relied most heavily on EU workers pre-pandemic, such as hospitality and warehouse and transport workers. This was...



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