The Bank of England said last month that CPI inflation was set to rise to 4% late this year, "owing largely to developments in energy and goods prices", and that the case for raising interest rates from historic lows appeared to have strengthened.
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Wages have already soared: a heavy goods vehicle (HGV) Class 1 driver job was being advertised for 75,000 pounds ($102,500) per annum, the highest the recruiter had ever heard of. "Wages will have to go up, so prices for everything we deliver, everything you buy on the shelves, will have to go up too," said Craig Holness, a British trucker with 27 years experience. No-one really knows how many people came: in mid-2021, the British government said it had received more than 6 million applications from EU nationals for settlement, more than double the number it believed were in the country in 2016.Īfter Brexit, the government stopped giving priority to EU citizens over people from elsewhere.īrexit prompted many eastern European workers - including around 25,000 truckers - to leave the country just as around 40,000 truck licence tests were halted due to the pandemic.īritain is now short of about 100,000 truckers, leading to queues at gas stations and worries about getting food into supermarkets, with a lack of butchers and warehouse workers also causing concern.
Johnson casts his Brexit gamble as an "adjustment" though opponents say he is dressing up a labour shortage as a golden opportunity for workers to increase their wages.īut restricting immigration amounts to a generational change in the United Kingdom's economic policy, right after the pandemic triggered a 10% contraction in 2020, the worst in more than 300 years.Īs the EU expanded eastward after the 1989 fall of the Berlin Wall, Britain and other major European economies welcomed millions of migrants from countries like Poland, which joined the bloc in 2004. He later promised to protect the country from the "job-destroying machine" of the European Union. "Taking back control" of immigration was a key message of the Brexit campaign, which the Johnson-led "Leave" campaign narrowly won. Johnson has bluntly told business leaders in closed meetings to pay workers more. Stagnant wages, he said, would have to rise - for some, the economic logic behind the Brexit vote. He said Britons had voted for change in the 2016 Brexit referendum and again in 2019, when a landslide election win made Johnson the most powerful Conservative prime minister since Margaret Thatcher. "What I won't do is go back to the old failed model of low wages, low skills, supported by uncontrolled immigration," Johnson, 57, said when asked about the shortages.
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