Staff shortage and increased demand leaves UK in crisis over inflation fears
The easing of lockdown has seen a rapid surge in customer demand. Latest figures retrieved from HIS Markit/ CIPS show the strongest growth in UK business activity in 24 years. Which also means a staff shortage throughout the UK.
The “eye-popping” surge in the U.K, post Brexit is heavily impacting the recruitment process particularly in the hospitality and services industries. With higher wage demands and an increase in prices of goods, the hospitality industry is facing a crisis.
PMI survey data conducted by IHS Markit/CIPS reveals a rapid increase in growth. Having previously been recorded as 61 in April, the figure rose to an unexpected 62.9 in May.
IHS Markit’s Tom Moore stated, “The latest survey results set the scene for an eye-popping rate of UK GDP growth in the second quarter of 2021, led by the reopening of customer-facing parts of the economy after lockdowns.”
With a staff shortage and a surge in demand, the hospitality and services industries are struggling to recruit staff.
Business Confidence Survey Data conducted by industry insight consultants, CGA in association with Fourth, revealed that 51% anticipate shortages in all roles with 39% worried they will be unable to recruit for back of house roles.
CGA Director, Karl Chessell said “Recruitment and retention are going to be huge concerns for hospitality over the remainder of 2021. Post-Brexit shortages had been expected for some time, but COVID-19 has multiplied the difficulties and many businesses are already facing a staffing crisis at the worst possible time.”
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