Question to the HM Treasury:

To ask Her Majesty's Government what assessment, if any, they have made of the relationship between labour shortages in the UK and levels of economic productivity.

Labour shortages are a global issue with increases in vacancy levels across advanced economies. In the UK, there are now over 360,000 more vacancies than prior to the pandemic (three months to October 2021 compared to three months to February 2020).

The long-term effects of the pandemic, including current labour shortages, on productivity levels are highly uncertain. The government has implemented polices that aim to reduce long-term economic scarring by protecting jobs and livelihoods.

In their most recent forecast the OBR revised down their estimate of long-term scarring from the pandemic. The OBR noted that ”Government schemes to sustain viable jobs and support household incomes through the pandemic have proved remarkably successful.”