Staff shortages in Britain's farming, haulage, and hospitality sectors have spread to almost all parts of the economy, exerting "severe pressure" on medium-sized business in the UK, a new survey has revealed.
The report mentioned firms that are considering cutting production and raising prices, also referring to companies that plan to increase wages and introduce extra perks to lure new employees.
About three-quarters of the firms polled said they have offered employees better pay, while two-thirds have "tried to cultivate the right working culture" to retain people. Bosses said they had increased pay by 11% and 13% on average for current staff and new hires, respectively, according to the survey.
The report said that higher wages lead to additional expenses in the hospitality sector, which has already been hit by soaring "food, drink, supply, and utility costs". The survey also warned of a "significant" knock-on effect for consumers due to a possible surge in prices over the next six months.
Referring to the survey, BDO partner Ed Dwan told The Guardian that "Brexit, global supply chain issues, and the long tail of COVID -19 has created a perfect storm for UK businesses".
He spoke after petrol stations across Britain witnessed long lines as drivers have been overwhelmed by panic-buying following oil companies announcing that they were restricting deliveries and closing some stations over a dearth of
heavy goods vehicle (HGV) drivers.
Last week, the government said it would issue at least 5,000 temporary visas to truck drivers to resolve the issue with the supply chain.
The UK's hospitality sector is also suffering from a shortage of staff as at least one in six jobs currently remains vacant, according to the latest business confidence survey conducted by the consultancy CGA and the technology services firm Fourth.