The lack of staff is putting medium-sized companies across the country under severe pressure, as new research shows.
A survey of 500 companies found that one in four found it difficult to work normally due to labor shortages.
Management consultancy BDO said more than a quarter of the companies surveyed said that reduced inventory levels due to supply chain disruptions also put pressure on their operations.
Over a third of respondents said they have cut product lines and services and expect these cuts to be long-term.
A similar number predicted that the prices of their products or services would have to rise in the next few months.
The labor shortage was attributed by many to Brexit and the pandemic, while two in five said their main recruiting challenge was the unavailability of staff in their area.
Ed Dwan of BDO said: “Brexit, global supply chain problems and the long tail of Covid-19 have created a perfect storm for UK businesses.
“After overcoming the challenges of the pandemic and hoping for some respite, companies faced major disruptions, with companies in almost all sectors reporting staff shortages.
“This is an era of upheaval and the challenges facing the UK’s middle class, the engine of the UK economy, point to a long way to go.”
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