Study: UK firms to face labor shortage post-Brexit 
2019-01-04
British firms are facing labor shortages, stagnating growth and price pressures heightened by Brexit, according to the largest private sector survey of business sentiment, published yesterday.
The percentage of firms reporting an increase in domestic sales and orders in the key services sector weakened to the lowest level in two years at the end of 2018, according to the British Chambers of Commerce’s quarterly survey of 6,000 firms.
“Domestic activity in the dominant services sector weakened for the second successive quarter, with consumer-facing firms particularly downbeat amid subdued household spending levels,” said Suren Thiru, Head of Economics at the BCC.
Businesses, particularly in manufacturing, also reported an increase in price pressures, partly blamed on the weakening of the pound amid Brexit uncertainty.
“The marked increase in cost pressures for businesses in the quarter suggests that inflation will be higher over the near term, with the continued weakness in sterling maintaining the upward trend on the cost of imported raw materials,” said Thiru. Four-fifths of manufacturers reported difficulties in recruiting staff, the equal highest level since the survey began in 1989. Britain has record levels of employment, but the BCC warned reduced immigration after Brexit could hit businesses with labor shortages.
