London Daily

Focus on the big picture.
Saturday, Nov 29, 2025

UK labour crisis could last up to two years, CBI warns

UK labour crisis could last up to two years, CBI warns

Lobby group urges action on visas for foreign workers such as drivers, welders, butchers and bricklayers
The labour crisis could last for up to two years, Britain’s leading business lobby group has warned, as it called for ministers to take action on visas for foreign workers and stop “waiting for shortages to solve themselves”.

Amid the most severe labour crunch since the 1970s, the Confederation of British Industry (CBI) launched a broadside against the government, saying the UK’s economic recovery from the winter lockdown was being undermined by a lack of skills in key positions, with mounting risks that the problem would continue for some time.

“Standing firm and waiting for shortages to solve themselves is not the way to run an economy,” said the CBI director general, Tony Danker, whose group represents 190,000 businesses with more than 7 million employees. “We need to simultaneously address short-term economic needs and long-term economic reform.”

He said the government’s ambition to make the British labour force more highly skilled and productive was right, and that businesses would train and hire more homegrown workers in time, but added that this could not be achieved overnight.

“A refusal to deploy temporary and targeted interventions to enable economic recovery is self-defeating,” said Danker.

The CBI is calling for the government’s shortage occupation list, which helps recruit workers from abroad to fill particular skills gaps, to be updated to include lorry drivers, welders, butchers and bricklayers.

A lack of butchers in slaughterhouses has caused a crisis on pig farms, with the National Pig Association warning that farmers may have to kill and burn nearly 100,000 animals unless ministers agree to a temporary relaxation of visa rules so that additional workers can be recruited to process the meat.

Britain needs about 100,000 more lorry drivers, according to the Road Haulage Association, which estimates it will take at least 18 months to train enough people to fill the gaps.

Businesses are having to cut capacity because they are unable to meet demand, the CBI said, with hoteliers limiting the number of bookable rooms because they don’t have enough housekeeping staff and can’t get linen laundered. Elsewhere, restaurant owners have had to choose between lunchtime and evening services because they are unable to cater for both.

Danker said: “Businesses are already spending significant amounts on training, but that takes time to yield results, and some members suggest it could take two years rather than a couple of months for labour shortages to be fully eliminated.”

Kwasi Kwarteng, the business secretary, wrote to business leaders last month calling for firms to hire British workers to deal with labour shortages rather than relying on immigration.

With the furlough scheme due to be removed at the end of this month, he suggested domestic workers should be a priority, telling bosses: “Many UK-based workers now face an uncertain future and need to find new employment opportunities.”

However, the Resolution Foundation said on Sunday that staff shortages were unlikely to be solved by the end of furlough, and warned mismatches between the types of jobs that may no longer be needed and vacancies elsewhere in the economy would persist into next year without government action.

The number of people on furlough fell to 1.7 million in August, and the thinktank said as many as 900,000 workers could still be reliant on the wage support scheme when it ends on 30 September, most of them older workers or those under the age of 25. However, the majority are likely to return to their previous jobs. And despite firms reporting hiring bottlenecks, even a fresh surge in job starts is unlikely to prevent unemployment rising this autumn.

“Furlough ending is not the panacea some people think will magically fill labour supply gaps,” said Danker. “These shortages are already affecting business operations and will have a negative impact on the UK’s economic recovery.”

In a report published on Monday, the CBI said firms with furloughed workers would probably bring them back, which would not help companies struggling with labour shortages. It said people facing redundancy would probably prefer to get back into their old occupation with other firms, or would need time to retrain into other sectors, meaning there would be little immediate benefit.

The CBI said a third of the companies responding to its July manufacturing survey were worried that a lack of workers would limit economic growth this autumn, the highest share since the mid-1970s.

The Guardian has approached the Home Office for comment.
Newsletter

Related Articles

0:00
0:00
Close
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
×