Economics

In the News

Post pandemic labour shortages - is the balance of power shifting to workers?

Graham Watson

8th June 2021

A story about labour markets, with macroeconomic implications.

John Harris wonders whether the current labour shortages in certain sectors, notably hospitality are going to cause a reconfiguration of the economy, with power shifting in favour of labour, in part as a result of 1.3 million foreign workers leaving the UK.

The net result has been to drive up wages, and make people think about why they work.

And the macroeconomic consequences? Higher inflation, of the cost-push variety.

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