More than 600,000 people have been identified by the coronavirus warning app in the UK and have been asked to isolate themselves. Businesses complain that the lack of workers threatens recovery.
The UK Government is rushing to address a severe shortage of workers affected by the latest wave of the Covid-19 pandemic. Although more than 70% of the adult population (36 million people) has been vaccinated against coronavirus, a easing of restrictions is spurring a new increase in cases and hence, mass self-isolation.
The British media say that the country is in the middle of a “pingdemie”, where a growing number of people are warned or instructed by the coronavirus warning application.
The app, which notifies users if they have come in contact with someone who has tested positive for Covid-19, advises them to isolate themselves for 10 days. In one week in mid-July, 618,903 people in England and Wales received the notice and were forced to leave work and be quarantined.
New hurdle for firms struggling
The lack of staff is a major concern for some sectors of the British economy. For example, companies in the catering network that supports the country’s supermarket chain have reported that entire production lines and driver fleets have been shut down. One report suggested that 90,000 truck drivers are currently unavailable for work.
Empty supermarket shelves are being seen all over the country, and in many other sectors such as shops, bars, restaurants and offices that have had to close or reduce their hours. Hospitals are also seeing a large number of staff shortages, while railway and bus companies have cut off services due to a lack of drivers.
The Center for Economic and Business Research (CEBR) has forecast a loss of 4.6 billion (5.39 billion euros, $ 6.35 billion) for the UK economy from self-isolation over the past month. The labor shortage comes at a time when the UK’s economic recovery from the pandemic is getting worse.
The country purchasing manager index (PMI) fell from 62.2 to 57.7 in July. “Employment growth has eased to the slowest levels since March. Respondents cited a lack of candidates to fill vacancies and an extremely large number of staff layoffs, ”Duncan Brock, group director at the Chartered Procurement and Supply Institute (CIPS), told DW. PMI is produced by CIPS and IHS Markit research house.
Business executives have asked the government United Kingdom expedite the completion of isolation rules for positive case contacts with Covid19. The move is expected to end on August 16. Until then, the British newspaper The Guardian predicts that up to 2 million people could be tested positive for Covid-19 and up to 10 million workers – a third of the UK able-bodied population – could be forced to quarantine.
Daily testing of workers
Instead of speeding up the repeal of the restrictions, the government responded by excluding workers in some sectors from the need for quarantine. UK media report that around 500 companies in the food sector have already been told that their staff no longer needs to isolate themselves. Instead, firms have to conduct daily employee testing, which many companies say is too cumbersome.
“Expanding test sites is not the solution for retailers who can not do daily testing in the country,” wrote James Lowman, chief executive of the Convenient Stores Association, which represents about 33,500 smaller stores, on Twitter. food.
Some unions, meanwhile, have advised their members to ignore any quarantine waivers, citing concerns that jobs could become hotbeds of infection, leading even more staff to self-isolation.
“The decision taken by the government to introduce exemptions for critical workers from the self-isolation guideline was driven by sources, not those that are safe for workers or their families,” said Gary Smith, general secretary of the GMB union. which represents about 600,000 workers in several sectors, including retail, social care and education.
“GMB is urging ministers to reconsider their decision to play with the lives of our top workers before it is too late.”
The largest shortage of manpower since 1997
Many business executives say the isolation is exacerbating the worst job shortages in more than two decades, which became apparent during the rush to reopen businesses after the winter stalemate. Hundreds of thousands of people who have been laid off or exploited have since found other jobs. Delays in hiring substitutes are creating major obstacles.
Meanwhile, the shortage of overseas workers, due to immigration rules imposed after the UK left the European Union in December, has added fuel to the fire.
“Many seasonal workers have stayed away because of Brexit and barriers to entry,” Duncan told DW. “Pandemics and travel restrictions have also hampered the number of workers in the UK.”
Another factor is the summer holiday season. A large number of staff are currently taking long periods of annual leave, as they have delayed the holidays by several months due to blockage.
Further inflation is expected
The workforce tightening is also fueling other economic straits created by the pandemic, including delays at container ports in China and other major export countries. Delays have caused shortages of raw materials and imported goods, spurring rising inflation. Policymakers insist this peak is temporary, but some business executives fear higher prices could be long-term. “Businesses are paying higher wages to maintain [ose] attracting talented and capable staff, ”Duncan told DW. “This will lead to higher cost burdens for businesses and consumers as inflation rises.”
He cited UK PMI data showing that the manufacturing, construction and services sectors are seeing delays in orders as a result of labor shortages as firms try to buy shares to meet expected shortages of raw materials .
DW