Work Matters 2023: The UK labour market in an international context
The UK’s workforce is smaller than it was pre-pandemic with the OECD labelling it the ‘worse performer’ in the G7 for workforce participation since Covid-19. Employers are struggling to recruit, and workers continue to live through an unparalleled and enduring crisis in living standards.
Against this backdrop, the IMF has forecast that the UK economy will not suffer a recession in 2023 and has recommended the Government should look to alleviate sectoral and skilled labour shortages. While other economists have stated that inflation remains ‘sticky’ and warned that the UK could face a recession in 2024.