Friday, September 24

Brexit exacerbates the global crisis of product shortages in the United Kingdom

To the shortage of supplies and raw Materials, as well as the shortage of products worldwide due, among other reasons, to the impact of the Delta variant of the coronavirus or the policy of hoarding by China, is added in the United Kingdom another factor: the Brexi. Just a few days ago, news broke that the British meat industry is asking the government to allow it to recruit prisoners due to a significant staff shortage. And last monday McDonald’s reported in a statement that its nearly 1,300 restaurants in the country have been forced to do without smoothies and other drinks on your menu due to issues

with the supply chain. “Like most retailers, we are currently experiencing some problems in the supply chain, which affects the availability of a small number of products,” they detailed in the text.

The measure was launched by the fast food chain after another, Nando’s, was forced to temporarily close around 50 of its 400 restaurants after suffering problems with the supply of chicken. Other strings, such as KFCThey have also recognized that they are going through difficulties.

For Richard Griffiths, executive director of the British Poultry Council, the association that unites the poultry feed business, the problems facing the industry today have a clear motive: the divorce between London and the EU. “When you don’t have people, you have a problem, and this is something that we are seeing throughout the supply chain. The labor crisis is a Brexit problem, “he warned.

Fewer drivers and more immigration requirements

In all this matter the deficit of about thousands of drivers of trucks, caused by the exodus of foreign citizens, the quarantines imposed by the Covid-19 and the new immigration requirements.

Also they supermarkets they accuse the lack of some products. Ash Amirahmadi, CEO of Arla Foods UK, the largest dairy supplier in the country, explained to Sky News that in a month, up to a quarter of its milk deliveries to large supermarkets had not been made. There is also a crisis in the logistics, hospitality, construction industries … and there is even a deficit of job candidates that require higher qualifications, such as engineering or finance.

The blow in 2020, and the consequences of which drag on well into 2021, is twofold. Brexit and the pandemic were not a good combination, but a “perfect storm”, according to sources of Med Freight Services, an air logistics company.

For the Confederation of Hiring and Employment (REC) and the accounting firm KPMG, the UK is experiencing the worst labor shortage since 1997. Claire Warnes, chief productivity officer at KPMG warned that “the growing skills gap in the workforce has the potential to slow the UK’s economic recovery.”

And although some forecasts said that after the worst part of the pandemic the unemployment it would increase to 12%, the truth is that the figure is much lower. A report from the National Office of Statistics (ONS) indicates that the unemployment rate is 4.8%, 0.9 percentage points more than before the pandemic.