Unpacking the UK's Supply Chain Crisis: Brexit, Immigration, and the Government's Response

The problems within supply chains are not unique to the UK, they are global. The effects of re-opening after long periods of COVID-19 restrictions have contributed to labour shortages worldwide, most noticeably in the US and Canada. However, data indicates that the UK are facing more concerning labour shortages compared with the majority of other European countries, thus indicating that UK specific factors such as the immigration restrictions following Brexit have had a knock-on effect.  

The effects of Brexit and immigration on the UK supply chain crisis

Leaving the EU has been a consequential contributor to the supply chain crisis in the UK. Previously, European workers could travel to and from the UK and work here relatively restriction free and prior to 2022, EU nationals made up the majority of foreign employees in the UK.

Now, the stance is considerably different - a Skilled Worker Visa or a Temporary Worker Visa is required, and EU citizens make up approximately 53% of those refused entry at the UK border.

 Post Brexit rules have abolished free movement of people and instead implemented a points based immigration system. This system has a lengthy list of requirements that must be satisfied – including a pre-approved job offer from an eligible employer with a UK sponsor license. Yet, many roles in the most affected industries do not qualify for the Skilled Worker or Temporary Worker Route. Consequently, employers are struggling to fill roles and supply chain problems continue.

Additionally, sectors such as food manufacturing and agriculture typically employed a substantial number of EU nationals, but, in a post Brexit society they are finding it difficult to replace them.

The Government stance

While Government ministers were often keen to frame supply chain problems as a global issue related to a surge in demand for goods following recovery from the pandemic, they are now becoming increasingly willing to acknowledge the role that post-Brexit immigration restrictions have played – particularly as a factor contributing to the labour shortages.

Previously, the Government focused their efforts on training domestic workers as opposed to relying on EU workers, but have since become more pro-active in addressing the pressing need for migrant workers. As such, in an attempt to tackle the severe shortage of HGV drivers the Government offered thousands of new visas for essential drivers.

From the data thus far, it remains unlikely that shortage issues can be solved solely by training domestic workers. Other countries such as the US are also beginning to recognise the importance of recruiting workers from overseas as they face increasing pressure to include immigration in their ongoing response to supply chain concerns. Therefore, it is probable that much more will need to be done by the Government in terms of offering new visas and recruiting from overseas if we are to adequately address supply chain problems in the UK.