PEOPLE retiring early is a major cause of labour shortages in the UK, a new report claims.

The document, from the House of Lords Economic Affairs Committee, said it found many people had chosen to retire early as a ‘lifestyle choice’.
And it said the government should consider whether more will do the same in the future, and how more older people could be encouraged to stay in, or return to, work.

“It is possible that people got used to different habits and ways of working during the Covid-19 pandemic, which prompted them to reflect on their careers,” the report said.
The Department for Work and Pensions should consider ‘what measures could be taken, whether by the government or employers, to encourage future age cohorts to remain in the workforce’, it added.

On immigration, the report said an increase in non-EU workers had countered a drop in the number of people from the EU coming to the UK post-Brexit.
“This means that, at a macro level, there has been no reduction in the number of immigrants to the UK,” it said.
“However, changes in the structure of immigration are contributing to labour supply problems.
“Some sectors, especially agriculture and hospitality which relied more on EU workers are experiencing acute labour shortages.
“The changing structure of migration may explain why there are vacancies in roles associated with younger workers despite much of the rise in economic inactivity being in those over 50.”