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Logistics UK urges action on skills

19 January 2023

LOGISTICS UK co-signed a letter with other industry bodies addressed to the Minister for Immigration, Rt Hon Robert Jenrick MP, highlighting the industry’s critical labour shortage ahead of the upcoming Shortage Occupation List (SOL) review.

Logistics UK  senior policy manager Alexandra Herdman, said: “Logistics UK agrees that sectors and businesses must work towards reducing their reliance on migration to fill the skills gap, but presently the shortages are so high that we need a stop gap while we attract, recruit and train from the domestic workforce. 

“Currently, the number of HGV drivers in employment remains stubbornly at 2019 levels when there was an estimated chronic shortfall of 60,000 drivers. There has also been a significant fall in the number of vehicle technicians, mechanics and electricians in employment from 209,000 in Q3 2019 to 146,000 in Q3 2022. As a result, the UK logistics industry is working tirelessly to recruit and train a homegrown workforce through tools such as HGV Skills Bootcamps and apprenticeships.

“Generation Logistics, which launched in August 2022 – with backing from the government, logistics businesses and trade associations – is a ground-breaking campaign aimed at tackling industry’s long term recruitment issues and bringing together the sector to help solve its skills and labour shortages. However, government must recognise that despite extensive efforts and collaboration, our industry, which is one of the fastest growing in the UK’s economy, needs a short to medium-term labour boost to manage immediate and growing consumer demand.”

Temporary visa measures

The temporary visa measures which were made available to food supply chain workers over Christmas 2021, and were implemented by previous minister Tom Pursglove, concluded that there was not a significant number of applicants who applied. Logistics UK wants to make clear that this was not because the demand was not there – it was because the duration of the visa being offered to potential migrant workers was so short (a matter of weeks by the time the initiative was launched) that it was not feasible for them to disrupt and uproot their lives. The Migration Advisory Committee (MAC)’s annual review of 2021 concurs with our view that temporary measures such as temporary visas are not a suitable solution to skills shortages. 

Logistics UK is urging government to add forklift drivers, HGV drivers – of which there is an estimated shortage of 60,000 drivers – and warehouse operatives to the Skilled Worker Visa and subsequently the SOL, as well as ensuring mechanics remain on the list. Mechanics play a key role in industry and any impact to their availability would be detrimental to the sector. While it is encouraging that logistics and warehouse managers are eligible to apply for the skilled worker visa, the SOL currently fails to fill the roles industry most desperately needs. 

Logistics is the backbone of the UK economy contributing a significant £139 billion Gross Value Added (GVA) and accounts for 8.5% of all non-financial UK employment. However, to ensure trade continues to flow smoothly, a skilled workforce is vital. Government support is a key enabler of this, and Logistics UK is eagerly awaiting the publication of the call for evidence into the review of the SOL in 2023, and working with industry to further address the skills shortage.

 
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