Labour shortages, automation and technological adoption in post-Brexit UK's logistics industry

Lea Sitkin

Chapter 32 in Research Handbook on Law and Political Economy, 2025, pp 545-561 from Edward Elgar Publishing

Abstract: This chapter examines how UK logistics firms responded to labour shortages following Brexit's immigration restrictions, which aimed to transition Britain toward a “high-wage, high-skill, high-productivity economy.” Through 18 months of research including interviews, industry talks, and document analysis, the study reveals mixed outcomes from the Conservative government's strategy to reduce reliance on low-skilled migrant workers. While some firms improved wages and working conditions and accelerated technological adoption, significant disparities emerged between large and small enterprises, with the former successfully invested in automation and competitive wages, while smaller firms struggled with costs, technological barriers, and market pressures. The research demonstrates that training initiatives and apprenticeship programs failed to address skill shortages effectively, particularly for roles like HGV drivers. The findings suggest that the transition to a high-productivity economy has been “painful,” creating increased inequality within the logistics sector rather than broad-based improvement, highlighting the limitations of market-based solutions to structural labour challenges.

Keywords: Brexit; Logistics; Automation; Immigration; Labour shortages; Technology (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803921181
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