Macroeconomics: UK economy, IB Economics

The Migration Advisory Committee has warned that the UK faces shortages of key skills in the near future. Among those jobs flagged up are bricklayers and butchers, never mind workers in the care sector, all fairly essential to a thriving economy, not least if the government have any intention of meeting their own housebuilding targets (Clue: they don't!).

Any such shortages will decrease Britain's productive capacity, reduce economic efficiency and, obviously, reduce growth. Of course, these sort of problems could be overcome if we only had a source of migrant labour. Which we did.