| Abstract | The early 2020s were difficult for the UK. While labour shortages were at a historic high in many countries across the globe following the COVID-19 pandemic, labour shortages were exacerbated in the UK by Brexit, which put an end to free movement to the UK. The previous Conservative government, headed by Boris Johnson PM, urged voters to accept the pains of Brexit in return for longer-term gains, arguing that labour shortages will incentivise employers to pay their workers more and to invest in training and automation. No longer would the UK rely on low-skill labour from abroad; instead, a ‘high-wage, high-productivity’ economic future beckoned. But doubts remain as to the effectiveness of this strategy. The chapter considers how firms within the logistics industry are responding to labour shortages. While there is some evidence for wage growth, working conditions remain poor, and disparities in technological adoption augur divisions between firms within the industry. Thus, the pivot to a high-wage, high productivity future may exacerbate inequalities. |
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