British industry warns of Brexit skills shortage

British industry chiefs are warning the government that the United Kingdom's impending departure from the European Union could cause a staffing crisis as manufacturers face the biggest shortage of skilled labor for 30 years.

A survey carried out by the British Chambers of Commerce (BCC) revealed that, in the final months of 2018, high levels of employment among the British workforce and a drop in the number of people from other EU member states coming to the UK since the Brexit vote in July 2016 meant that more than 80 percent of manufacturers struggled to find staff.

Brexit is currently scheduled for the end of March, after which time Home Secretary Sajid Javid aims to cut immigration from the EU by up to 80 percent, by making workers from the EU subject to the same minimum salary threshold of 30,000 pounds ($37,600) that currently applies to nationals from other countries.

BCC Director-General Adam Marshall said it was vital that the government realized the scale of the challenge employers would face, and did what it could to help them overcome it.

"Business concerns about the government's recent blueprint for future immigration rules must be taken seriously," he said. "Companies must be able to access skills at all levels without heavy costs or bureaucracy."

The weakness of the pound has also made the UK a less desirable destination for overseas workers, contributing to a six-year low figure for net migration from other EU member states to the UK.

This has come at the same time as the highest levels of employment in the UK since 1971, with unemployment at its lowest since 1975, putting pressure on companies to raise wages to hire new staff.

Continuing uncertainty over Brexit, with no departure deal agreed yet and less than three months in which to do so, add to an air of uncertainty and make it hard for businesses to plan ahead with any confidence.

Ironically, one consequence of the lack of clarity over Brexit is faster than usual growth in the manufacturing sector. Productivity in December was at a six-month high as companies began stockpiling in anticipation of a no-deal Brexit.

Any similar repetition of this across other sectors is only going to be a short-term gain, however, as the Bank of England has warned that the majority of UK businesses have made little preparation for a no-deal Brexit.

If companies have stockpiled goods, in the aftermath of a no-deal Brexit, they will then start to run down those supplies rather than making new orders, so that too will have a negative impact.