09 October 2017

BRC: Brexit uncertainty fuels workforce shortages with consumers paying the price

Without swift action to provide certainty for people from EU working in the UK and a new immigration system fit for the future, consumers could pay the price, according to a new report The People Roadmap published today by the British Retail Consortium.

170,000 people from the EU work directly in retail, which accounts for six per cent of the industry’s UK workforce. In some regions of the country and different parts of the industry this is much higher – over a quarter in warehousing and distribution, for example.

The latest report in the BRC’s A Fair Brexit for Consumers series, illustrates how the lack of certainty about the future status of EU colleagues and the UK’s future relationship with the EU, is driving workforce changes that have the potential to impact consumer choice and experience. The new data reveals:

• 56 per cent of retailers revealed that their EU colleagues are concerned about their right to remain in the UK.
• 22 per cent reported that people from the EU have already left their UK workforce.

The retail industry is undergoing a transformation, driven by technology and the changing needs of consumers. This is increasing the need for new and different skills. Therefore, for retailers to continue delivering for consumers now, the Government must recognise the spectrum of skills and experiences that currently contribute to the success of the industry.

The BRC warns that the knock-on impact of a potential reduction in availability of skills and workers, and higher costs of employment could hit consumers. From the service delivered in a store to next day delivery of an online order, from the latest developments for your mobile phone to the prices of what you buy, it is clear that people from the EU play an important and hugely valuable role. [...]

Full report

© BRC - British Retail Consortium