Industries with the Highest Labor Costs in the UK in 2020

1. Charities in the UK

Labor Costs for 2020: $28.1B

Organisations included in the Charities industry are defined as non-profit organisations with some meaningful degree of voluntary participation and whose aims are in the public benefit. This covers a broad range of charitable objectives, from emergency relief and international aid to arts programmes. Charities derive their income primarily from donations made by individuals and grants received from the public sector or benevolent organisations, meaning economic conditions play a large role in industry revenue growth.Industry revenue is forecast to grow at a compound annual rate of 1% over the five years through 2019-20, to £52.5 billion. However, as donations from the public are the largest source... Learn More

2. Temporary-Employment Placement Agencies in the UK

Labor Costs for 2020: $27.4B

Businesses in this industry 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 as hiring slows. 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. Hospitals in the UK

Labor Costs for 2020: $26.6B

This 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 demand. This has aided demand for private hospitals, as a greater number of patients are seeking private treatment. Over the five years through 2020-21, revenue is expected to rise at a compound annual rate of 0.4% to reach £95.2 billion.

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

4. Banks in the UK

Labor Costs for 2020: $21.3B

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. Although economic uncertainty since the EU referendum in June 2016 limited demand from home mortgages to an extent, while subdued business confidence reduced demand for commercial loans, prior to the outbreak of the coronavirus the industry was expanding at a moderate pace. Personal lending grew as consumers became increasingly reliant on debt to fund spending. However, a stricter regulatory environment, including increased capital requirements introduced under the Basel III... Learn More

5. Construction Contractors in the UK

Labor Costs for 2020: $20.6B

Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. While, by broad definition, industry 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 almost exclusively on the construction of new dwellings, while civil engineering specialists afford clients services across the infrastructure value chain. Meanwhile, some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.Inclusive of 1.5% growth expected... Learn More

6. Universities in the UK

Labor Costs for 2020: $20.1B

Universities provide higher education, leading to qualifications such as bachelor's degrees, foundation degrees, master's degrees and higher education diplomas. Over the past five years, the industry has faced challenges stemming from cuts to the level of funding received from the government and disruption caused by the coronavirus outbreak. The share of revenue generated from tuition fees has increased over much of the period following a rise on the cap on undergraduate tuition fees from £3,000 in 2012 to £9,250 in 2017. The cap on undergraduate student numbers in the United Kingdom was also lifted over the period, leading to a... Learn More

7. General Secondary Education in the UK

Labor Costs for 2020: $19.7B

Industry operators generally provide education to students between 11 and 18 years of age. The majority of schools are funded by the government or local education authorities, although the industry also includes privately funded independent schools, which are expected to be the main driver of industry growth over the five years through 2019-20. The majority of secondary schools are either academies, which are state-funded but operate independently of local authorities, or maintained schools, which are controlled by local authorities. 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... Learn More

8. Management Consultants in the UK

Labor Costs for 2020: $19.0B

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 2019-20, industry revenue is expected to grow at a compound annual rate of 2.8%, including growth of 4.5% in the current year, to reach £55.5 billion. This growth is anticipated to be 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 industry participants, as banks and other financial institutions have required assistance to reformulate... Learn More

9. Primary Education in the UK

Labor Costs for 2020: $18.2B

The Primary Education industry consists of approximately 26,500 schools. Approximately 93% of primary school pupils attend state-funded schools and academies, with the remainder enrolled at independent schools. Industry revenue is mostly derived from government funding, either distributed directly to establishments or via local education authorities, with the remainder consisting of tuition fees and donations from children enrolled in privately funded independent schools. IBISWorld expects industry revenue to decrease at a compound annual rate of 1.8% over the five years through 2019-20 to £31.2 billion. This can be attributed to declines in government spending on education in 2015-16, 2017-18 and 2019-20, as well as... Learn More

10. Computer Consultants in the UK

Labor Costs for 2020: $16.3B

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 clients within the financial services sector and the public sector are particularly important markets. Demand for industry services is largely influenced by business confidence levels, which rise and fall with general economic conditions, and technological advancements, particularly those that are beneficial to businesses.

With the exception of a plateau in the current year caused by the global economic slowdown generated... Learn More