Industries with the Highest Labor Costs in the UK in 2021

1. Charities in the UK

Labor Costs for 2021: $23.7B

Industry growth has been constrained throughout the period by falling funding from the European Union following the EU referendum in 2016. Furthermore, high profile scandals have prevented major players from claiming government funding, while support from the general public is expected to suffer. In combination with public funding cuts, charitable organisations' surplus margins have fallen throughout the period while demand for social services has risen. Cuts to overseas aid budgets announced in November 2020 will further constrain revenue growth in the current year.

Revenue is expected to contract at a compound annual rate of 2.7% over the five years through 2021-22... Learn More

2. Temporary-Employment Placement Agencies in the UK

Labor Costs for 2021: $21.8B

Temporary-employment placement agencies provide clients with workers to temporarily replace or supplement their existing labour force. Industry performance generally hinges on economic conditions, in particular the unemployment rate and business confidence. Both good and weak conditions can benefit the industry, but weak conditions can initially hinder performance by slowing hiring activity. When the economy is strong and unemployment is low, businesses turn to employment placement agencies to help find suitable skilled and unskilled labour. Additionally, if business confidence falls, temporary workers are often the first to be hired, as tentative businesses seek flexibility in their hiring practices to insulate themselves... Learn More

3. General Secondary Education in the UK

Labor Costs for 2021: $19.9B

The General Secondary Education industry provides education to students between 11 and 18 years of age. Most schools are funded by the government or local education authorities (LEAs), although the industry also includes privately funded independent schools, which are likely to drive industry growth over the five years through 2020-21. The majority of secondary schools are either academies, which are state-funded but operate independently of LEAs, or maintained schools, which are controlled by LEAs. Both operate according to government guidelines and are therefore directly influenced by government policy.

Industry operators rely heavily on government funding, which has remained fairly safeguarded from... Learn More

4. Management Consultants in the UK

Labor Costs for 2021: $19.8B

The Management Consultants industry covers a broad range of consulting services, including strategic and organisational planning, marketing, IT, human resource consulting and business process management. Over the five years through 2020-21, industry revenue is expected to grow at a compound annual rate of 3.6% to reach £64.1 billion. This growth has been largely driven by rising demand for IT consulting services. In addition, regulatory changes in the financial services sector, the industry's largest downstream market, have benefited the industry, as banks and other financial institutions have required assistance to reformulate business strategies and operations in order to comply with new... Learn More

5. Universities in the UK

Labor Costs for 2021: $19.5B

Over the five years through 2021-22, industry revenue is expected to grow at a compound annual rate of 2.2% to reach £44.5 billion. This expansion can be attributed to an increase in student numbers over much of the period, rising tuition fees and growing investment returns. The increase in tuition fees to £9,250 in 2017-18 has driven revenue growth. The cap on undergraduate student numbers in the United Kingdom was also lifted over the past five-year period, leading to a rise in student enrolments.

However, the industry has faced challenges stemming from cuts to the level of funding received from the... Learn More

6. Supermarkets in the UK

Labor Costs for 2021: $19.3B

Industry revenue is expected to grow at a compound annual rate of 1.7% over the five years through 2021-22 to reach £207.1 billion. Changing shopping habits, the aggressive expansion of discount supermarkets and increased external competition have influenced industry performance over the past five years. The largest operators have cut prices to attract greater loyalty from their customers. The Big Four's grip on the industry has weakened as a result of slipping profit margins, and a weak pound since the EU referendum has eaten into profit. Nevertheless, supermarkets have been expanding into the Convenience Store industry.

National lockdowns and the closure... Learn More

7. Hospitals in the UK

Labor Costs for 2021: $18.4B

The Hospitals industry provides medical, diagnostic and treatment services at general and specialised hospitals. A growing and ageing population has increased demand, but public healthcare budgets have failed to keep pace with this, which has aided demand for private hospitals as a greater number of patients seek private treatment. Over the five years through 2020-21, revenue is expected to rise at a compound annual rate of 1.6% to reach £101 billion.

The National Health Service (NHS) has suffered the slowest decade of spending growth in its existence, while inpatient admissions have risen and the total number of beds available has declined.... Learn More

8. Construction Contractors in the UK

Labor Costs for 2021: $17.6B

Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. While, by broad definition, operators are remunerated for completing new building and infrastructure construction contracts, or for fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on the construction of new dwellings, while civil engineering specialists afford clients services across the infrastructure value chain. Some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.

Prior to the... Learn More

9. Banks in the UK

Labor Costs for 2021: $17.1B

Retail and commercial banks generate most of their revenue by charging interest on loans, while a secondary source of revenue is represented by non-interest income from card fees and overdraft fees. Over the five years through 2021-22, industry revenue is expected to decline at a compound annual rate of 3.3% to £92.3 billion. The low-interest-rate environment of the past five years has limited the interest earned by banks from loans, negatively affecting income. Economic uncertainty since the EU referendum restricted demand from home mortgages, while subdued business confidence reduced demand for commercial loans. In addition, a stricter regulatory environment, including... Learn More

10. Computer Consultants in the UK

Labor Costs for 2021: $16.5B

The Computer Consultants industry is composed of businesses that provide expert advice and assistance in planning and designing computer systems that integrate computer hardware, software and communication technologies. Computer consultants provide services to clients in all sectors of the economy, although the financial services and public sectors are particularly important markets. Demand for industry services is largely influenced by business confidence levels, which typically rise and fall in line with general economic conditions, and technological advancements, particularly those that are beneficial to businesses.

With the exception of 2020-21, when revenue grew only marginally due to the economic slowdown caused by the... Learn More