UK labour shortage linked to early pensions

Employment poser: A bookshop assistant works in Bayswater, west London. A report by the House of Lords Economic Affairs committee has found that the shortage is not confined to skilled-labour, but in low-skilled jobs as well. — AFP

LONDON: Changes to the United Kingdom pension system that allow workers to draw their retirement pots early may be partly to blame for the country’s chronic labour shortage, according to a group of lawmakers.

Since the pandemic, the UK workforce participation has crashed more sharply than in any other leading economy, with the bulk of the decline in those older than 50, many of whom have chosen to retire early.