April 2, 2018
Combination of factors means UK faces severe workforce crisis by 2025
New projections published in Mercer’s Workforce Monitor predict that a perfect storm of falling net migration driven by Brexit and an ageing population, will lead to a severe shortage in the UK labour market. If these challenges are not met with immediate action by UK employers, they will face significant costs trying to attract workers with the leadership and skills they need to execute their business strategies. Mercer anticipates the UK workforce will increase by just 820,000, or 2.4 percent, by 2025, a significant reduction in recent trends that have seen 9 percent workforce growth in the 10 years to 2015. For the first time in half a century, the overall population will be increasing at a faster rate than the workforce, creating long term structural challenges for the economy.
A third of workers (32 percent) regularly struggle to be productive in their job, and one in six (16 percent) blame their manager – claims a new survey from ADP. This puts bad management ahead of inefficient systems and processes (15 percent) and staff shortages (13 percent) as the biggest drain on productivity in the UK workplace. The UK has been grappling with low productivity levels for a number of years, consistently placed behind other leading economies, such as Germany and the US in official productivity tables. While recent ONS figures suggested a recovery is underway, reporting 
Just over half (51 percent) of firms across the UK will grow their workforce in the year ahead, with confidence highest amongst small and mid-sized firms (58 percent) according to the latest CBI/Pertemps Network Group Employment Trends Survey. But the survey warns that delivering further jobs growth depends on businesses being confident they can remain competitive if they choose to base staff in the UK. Nearly two thirds (63 percent) currently believe that changes in the UK labour market will contribute to Britain becoming a less attractive place to invest and do business over the next five years – up from 50 percent last year and 25 percent in 2015. Skills gaps were the single most prominent worry facing firms, with nearly four in five (79 percent) respondents highlighting this as a worry – up from 64 percent in 2016. Access to overseas workers is a big contributor to this, with nearly half of respondents (49 percent) identifying uncertain access to labour supply – up from 35 percent in 2016 as a concern.
An increase in the number of UK-born employees leaving the UK’s workforce, either through retirement or emigration is coinciding with a shrinking pool of younger workers, which a fall in immigration can no longer fill, a new report warns. An analysis of the UK’s workforce showed that the UK’s workforce grew in 2016-2017 only because of an increase in EU and non-EU workers. 
Nearly three quarters of employers in a recent poll say retaining female talent in the workforce is the most important issue in HR in 2017, as changes to childcare funding could impact on the recruitment and retention of working mothers. The research, which was carried out by My Family Care and recruitment firm Hydrogen, found that most employers thought that flexible working and supporting working parents and carers was important to them but strikingly, nearly three quarters (70 percent) rate the issue of retaining female talent after parental leave as the most important issue. However, 60 percent of HR professionals said their company provided no form of coaching or training support for their employees going through the parental transition. When it comes to the success of their family friendly initiatives, flexible working proved to be the most successful, followed by their Childcare Voucher Scheme and then enhanced maternity or Shared Parental pay.
