Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of labour shortages on (a) economic growth and (b) gross domestic product in (i) 2022 and (ii) 2023.

Like other advanced economies, the UK is affected by global economic challenges, including the unprovoked Russian invasion of Ukraine. Support provided over the past two years has put the UK economy in a good position to deal with these challenges, with a record number of employees on payrolls and a strong economic recovery from the pandemic. Annual growth in 2021 was the fastest in the G7, and GDP data for Q1 2022 showed the UK had the joint fastest growth in the G7.

The UK has a strong labour market with an unemployment rate of 3.8% in the three months to May, which is close to historic lows, and youth unemployment and redundancies at record lows. Employment increased by almost 300,000 in the three months to May, with inactivity also falling.

The Office for Budget Responsibility are the government’s official forecaster, and they will update their forecasts for UK GDP in the Autumn report.