Economic Affairs Committee Report: Where have all the workers gone?

On 20 December 2022, the House of Lords Economic Affairs Committee published its report: Where have all the workers gone? in response to its consultation on UK labour supply.  

The report highlights the role of economic inactivity in the reduction in labour supply, which seems to be having more of an impact than pentup demand and churn. The committee recommends further investigations by the Department for Work and Pensions (DWP) on workforce participation, early retirement, the impact of various pensions systems, the Furlough into driving people to retire and how people can be incentivised to remain in work.

Changes in the immigration system are also pointed out as a possible reason for acute labour shortages in some sectors, which could lead to businesses failing to trade, with a reduction in the size of those sectors, especially agriculture and hospitality. Further investigations into these hypotheses are also recommended in the report.

BRC submitted written and oral evidence to this consultation and it is mentioned on page 37 report.