Berliner Boersenzeitung - UK 'jobs miracle' turns into employers' nightmare

EUR -
AED 4.30721
AFN 75.04906
ALL 95.511578
AMD 434.790006
ANG 2.098881
AOA 1076.479183
ARS 1633.590788
AUD 1.627507
AWG 2.110743
AZN 1.998135
BAM 1.957945
BBD 2.36232
BDT 143.911791
BGN 1.956074
BHD 0.442846
BIF 3489.761182
BMD 1.172635
BND 1.49616
BOB 8.104467
BRL 5.844769
BSD 1.1729
BTN 111.261714
BWP 15.93962
BYN 3.309795
BYR 22983.642195
BZD 2.358906
CAD 1.593769
CDF 2720.513174
CHF 0.915939
CLF 0.026785
CLP 1054.199114
CNY 8.007044
CNH 8.01045
COP 4288.794539
CRC 533.238815
CUC 1.172635
CUP 31.074822
CVE 110.755819
CZK 24.37678
DJF 208.401119
DKK 7.472268
DOP 69.776325
DZD 155.421478
EGP 62.903067
ERN 17.589522
ETB 184.104084
FJD 2.616195
FKP 0.863507
GBP 0.863135
GEL 3.148572
GGP 0.863507
GHS 13.138031
GIP 0.863507
GMD 85.602758
GNF 10289.870838
GTQ 8.960697
GYD 245.376635
HKD 9.18804
HNL 31.215994
HRK 7.530314
HTG 153.644064
HUF 362.609217
IDR 20303.937137
ILS 3.452038
IMP 0.863507
INR 111.228692
IQD 1536.151596
IRR 1540842.135344
ISK 143.812385
JEP 0.863507
JMD 183.781361
JOD 0.831444
JPY 184.148271
KES 151.446236
KGS 102.512326
KHR 4705.20161
KMF 492.507029
KPW 1055.372308
KRW 1726.963181
KWD 0.360175
KYD 0.977442
KZT 543.267779
LAK 25774.513442
LBP 105009.447276
LKR 374.857478
LRD 215.589357
LSL 19.536543
LTL 3.462486
LVL 0.709316
LYD 7.45214
MAD 10.828156
MDL 20.208607
MGA 4872.298025
MKD 61.58302
MMK 2462.531881
MNT 4198.466183
MOP 9.464155
MRU 46.89411
MUR 55.161185
MVR 18.123116
MWK 2042.147896
MXN 20.473739
MYR 4.654233
MZN 74.935737
NAD 19.536538
NGN 1612.494489
NIO 43.059592
NOK 10.876123
NPR 178.010182
NZD 1.986965
OMR 0.450756
PAB 1.17287
PEN 4.113256
PGK 5.089675
PHP 71.920083
PKR 326.872391
PLN 4.246116
PYG 7213.611083
QAR 4.272789
RON 5.203454
RSD 117.281962
RUB 87.925585
RWF 1714.392086
SAR 4.397591
SBD 9.438049
SCR 17.149829
SDG 704.171511
SEK 10.814215
SGD 1.492858
SHP 0.87549
SLE 28.876177
SLL 24589.561066
SOS 670.165086
SRD 43.924599
STD 24271.172941
STN 24.859858
SVC 10.263252
SYP 129.60945
SZL 19.536529
THB 38.125294
TJS 11.001451
TMT 4.110085
TND 3.379578
TOP 2.823423
TRY 52.968153
TTD 7.96147
TWD 37.088138
TZS 3054.714062
UAH 51.536521
UGX 4410.264652
USD 1.172635
UYU 46.775838
UZS 13998.332237
VES 573.351287
VND 30905.962944
VUV 139.316425
WST 3.208318
XAF 656.724148
XAG 0.015459
XAU 0.000254
XCD 3.169105
XCG 2.11385
XDR 0.81498
XOF 657.266022
XPF 119.331742
YER 279.849722
ZAR 19.527126
ZMK 10555.124618
ZMW 21.903587
ZWL 377.587929
  • RBGPF

    -1.1500

    62.6

    -1.84%

  • RYCEF

    0.5000

    16.3

    +3.07%

  • CMSC

    0.0000

    22.82

    0%

  • BCC

    -1.0600

    78.21

    -1.36%

  • GSK

    -0.4850

    51.825

    -0.94%

  • NGG

    -0.7600

    88.78

    -0.86%

  • CMSD

    0.1400

    23.27

    +0.6%

  • VOD

    0.3350

    16.135

    +2.08%

  • BCE

    0.2100

    23.99

    +0.88%

  • RIO

    0.2700

    100.75

    +0.27%

  • RELX

    -0.0500

    36.54

    -0.14%

  • JRI

    0.0300

    13.02

    +0.23%

  • BTI

    -0.0600

    58.74

    -0.1%

  • BP

    -0.8400

    46.54

    -1.8%

  • AZN

    -2.0850

    185.285

    -1.13%

UK 'jobs miracle' turns into employers' nightmare
UK 'jobs miracle' turns into employers' nightmare / Photo: Paul ELLIS - AFP

UK 'jobs miracle' turns into employers' nightmare

Job vacancies seem to come ten-a-penny in Keswick, a tourist town in England's picturesque Lake District, as the hospitality sector cries out for staff -- shortages which are a direct result, critics say, of the coronavirus pandemic and of Brexit.

Text size:

"Two live-in chef positions available. Excellent rates of pay," reads one advert in a restaurant window.

"Hiring. No experience needed," says another in a fish-and-chip shop.

Britain's ruling Conservative party claims to have engineered a "jobs miracle" since coming to power in 2010, with the national unemployment rate currently standing at 3.8 percent, the lowest level in almost 50 years.

That is, in fact, better than the International Labour Organization's definition of "full employment" -- a jobless rate of five percent.

But for Tony Wilson, director of the Institute for Employment Studies, while the current situation in Britain may be "the best context in 20 years for workers", it is not good for the economy as a whole.

The shortage of workers may be "leading to pay growth and some improvements in employment terms, but it doesn't help the economy at all," he said.

If companies are unable to fulfil their potential then profits and overall growth take a hit, he argued.

- Low growth -

Indeed, Britain is set to have the lowest economic growth of any Group of Seven country, projections show.

Back in Keswick, Alison Lamont, the 60-year-old co-owner of the Relish cafe, does not have a minute to spare as she juggles serving with taking payments.

Since Covid lockdowns were lifted, the small eatery has switched to takeaway services only.

There is simply no "time for clearing the tables", says Lamont.

Despite attempts to recruit via social media or simply by word-of-mouth, she cannot find the extra staff needed to run the cafe properly.

Young people "all want to be influencers or work from home", Lamont complains.

"The main impact on family life is that we don't get weekends together and no time away, we have to work and work and work," she tells AFP, as her husband, who prepares the food upstairs, runs down to bring a sandwich.

Lamont, welcoming each customer like an old friend, says she bought the cafe with her husband around a year before Covid struck.

She struggles to sleep some nights and sees no end to the current situation.

"You can only do this for so long," Lamont says.

- No luck -

Further up the street, the restaurant at George Hotel was forced to shut for three-and-a-half months this year because it had no chef, costing the business £30,000 ($35,000) a week, a situation that is seen again and again across the UK.

The owner of a London beauty salon told AFP she had even resorted to using a headhunter, typically used for recruiting senior management positions, to find a beautician -- with no luck so far.

In other sectors, airlines such as British Airways and EasyJet are struggling to re-hire the staff they laid off in their thousands at the start of the pandemic.

The result: mass flight cancellations and a situation that is only set to become worse during the upcoming summer holiday season.

The reasons for Britain's current labour market woes are widely blamed on the country's decision to quit the European Union and on the economic fallout from the coronavirus pandemic.

"Since the economy reopened... the demand for workers is much higher than the job seekers, especially in low-paid, low-skill sectors" such as cleaning, construction, distribution and warehousing, said Jack Kennedy, UK economist at recruitment group Indeed.

The fallout from Covid has caused almost half-a-million UK workers to leave the labour market, the expert said.

While employment rates in both France and Germany are currently "higher than before the pandemic," in the UK and US "it is still below pre-pandemic levels," said Wilson at IES.

- No Brits -

Seasonal farm jobs -- which outgoing Prime Minister Boris Johnson claimed would be filled by Britons following Brexit -- remain vacant.

"I don't think it has ever been so difficult," says Derek Wilkinson, managing director of vegetable grower Sandfields Farms in central England.

Prior to Brexit, Britain's agricultural and construction sectors had relied heavily on workers from central and eastern Europe, many of whom have since returned home.

Wilkinson, 55, points out that seasonal labourers must now apply for a special visa, which can take seven weeks to come through.

According to Indeed economist Kennedy, there is a total shortfall of around 200,000-300,000 European workers, including many Ukrainians who have stayed home to fight in the war against Russia.

With other eastern Europeans going back to home countries that have recently become more prosperous -- and Britons themselves showing little inclination to take on such back-breaking work -- many employers are having to look further afield for seasonal staff, from the Philippines, South Africa and Uzbekistan.

Wilkinson said that with a shortfall of 120 staff in May, Sandfields Farms would have to let 40,000 kilos of asparagus and 750,000 bunches of spring onions go to waste.

And coupled with Britain's cost-of-living crisis, that means his annual profits this year will be halved.

In order to woo workers, companies are having to offer better pay and conditions.

Wilkinson has renovated 400 mobile homes for seasonal workers, and a restaurant owner in Keswick has purchased a building to house their staff.

Gary Marx, owner of Keswick's George Hotel, has awarded pay rises far above the rate of inflation.

- New perks -

Other firms are offering different kinds of perks.

Accountancy giant PricewaterhouseCoopers, for example, allows employees to finish work early on Fridays. But some smaller companies are offering massage and aromatherapy treatments to staff, while dozens of other firms are trialling four-day weeks.

All this comes at a time when many Britons are re-thinking their careers completely.

With many workers on precarious contracts, one million people switched jobs in the last quarter, seeking better pay and a better life.

Before becoming pregnant, Lorna Roberts, 26, worked in hospitality. But with the arrival of her baby and the stresses of restaurant work, she moved to retail.

"It started to become more difficult after lockdown," says Roberts, who now sells outdoor gear for Alpkit in Keswick.

"A lot of people were rude, we were short-staffed constantly," she says, describing how former colleagues suffered panic attacks and breakdowns.

Her new, less stressful job also fits in better with her interest in nature. And Roberts says her hourly wage has also increased.

"I saw an ad outside and I just thought to pop in and ask," she says, highlighting the ease with which people are able to switch jobs in the current climate.

(T.Burkhard--BBZ)