17 Jun. 2016 | Comments (0)
Source: Eurostat and The Conference Board2) The labor market is getting tight in the UK The unemployment rate in the UK is currently below its long-term rate of 6.3 percent. 4.9 percent is the rate recorded in February 2016. While the joblessness rate drops, job vacancies increase: according to Eurostat (European Labor Force Survey), in the third quarter of 2015 there were 756,000 job vacancies in the UK. In times of high unemployment one can more easily expect an anti-migration rhetoric to spread easily, but in the current economic circumstances limiting the number of EU nationals will translate into stronger pressure on private sector companies to find talent. When the labor market is tight, companies face problems not only finding, but also retaining their workers.
Source: Haver Analytics and The Conference BoardThe combination of an aging population and low and decreasing unemployment makes the risk of labor shortages for the business sector a concrete, and, soon, an urgent issue. This is true not only for the UK but for most European countries where the slow growth of productivity does not compensate for the risk of an aging and shrinking labor force. However, the issue is particularly pressing in the UK and Germany thanks to the vitality of the labor market. All in all, an analysis of the migration issue that is rooted in data rather than emotions suggests that any limit to the mobility of people and workers within the EU would be detrimental for the British labor market, and for all Europeans with an interest in the UK.  Migration Statistics Quarterly Report: May 2016, Office for National Statistics.  See: Help Wanted: What Looming Labor Shortages Mean for Your Business, The Conference Board, April 2016.