Industries with the Highest Labor Costs in the UK in 2022

1. Charities in the UK

Labor Costs for 2022: $25.7B

Industry growth has been constrained throughout the period by falling funding from the European Union following the EU referendum in June 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 are likely to further constrain revenue growth in the current year.

Industry revenue is expected to contract at a compound annual rate of 2.9% over the five... Learn More

2. Temporary-Employment Placement Agencies in the UK

Labor Costs for 2022: $22.0B

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 2022: $20.5B

The General Secondary Education industry provides education to students between 11 and 18. Most schools are funded by the government, though the industry also includes privately funded independent schools. The majority of secondary schools are either academies or maintained schools, which operate according to government guidelines. Industry operators rely heavily on government funding, which has remained safeguarded from wider economic turbulence over the past five-year period due to the importance of maintaining and improving the standard of UK education. Per-pupil funding has come under pressure due to growing operational costs and a rising birth rate through the 2000s, raising demand... Learn More

4. Supermarkets in the UK

Labor Costs for 2022: $20.5B

Industry revenue is expected to grow at a compound annual rate of 1.2% over the five years through 2021-22 to reach £187.7 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. Supply chains have also been disrupted due to a shortage of heavy goods vehicles drivers, which has inflated purchase costs. Nevertheless, supermarkets have been expanding into... Learn More

5. Universities in the UK

Labor Costs for 2022: $20.4B

Over the five years through 2021-22, the Universities industry's revenue is expected to grow at a compound annual rate of 2% to £44.3 billion. This expansion can be attributed to an increase in student numbers, rising tuition fees and growing investment returns over much of the period. The increase in tuition fees to £9,250 in 2017-18 has been an important driver of revenue growth. Additionally, the cap on undergraduate student numbers in the United Kingdom was lifted in 2020-21, leading to a rise in student enrolments.

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

6. Management Consultants in the UK

Labor Costs for 2022: $20.0B

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 2021-22, industry revenue is expected to grow at a compound annual rate of 4.5% to reach £67.6 billion. This growth has largely been 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

7. Hospitals in the UK

Labor Costs for 2022: $18.7B

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 2022-23, industry revenue is expected to rise at a compound annual rate of 2.3% to reach £112.7 billion.

The outbreak of COVID-19 (coronavirus) necessitated the release of significant government funding to help hospitals boost their capacities to treat afflicted patients. In 2020-21, the NHS received an additional... Learn More

8. Computer Consultants in the UK

Labor Costs for 2022: $16.2B

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

9. Primary Education in the UK

Labor Costs for 2022: $16.2B

The Primary Education industry consists of just under 21,000 schools. Approximately 92.5% 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 1.7% over the five years through 2020-21 to £34 billion. This can be attributed to a loss of revenue from independent schools during 2020-21 due... Learn More

10. Banks in the UK

Labor Costs for 2022: $15.9B

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. A stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constrained lending activity. To protect profit margins, industry operators have implemented significant branch rationalisation programmes and made substantial job cuts over the past five years.

The outbreak of COVID-19 (coronavirus) had a significant effect on the industry, with industry revenue falling... Learn More