Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Industries with the Highest Labor Costs in the UK in 2023
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View a list of the Top 25 industries with the highest labor costsLabor Costs for 2023: $28.2B
Industry revenue is expected to contract at a compound annual rate of 4.2% over the five years through 2022-23 to £49 billion. Industry growth has been constrained 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 and reduced support from the public. In combination with public funding cuts, charitable organisations' surplus margins have fallen while demand for social services has risen. Cuts to overseas aid budgets, announced in November 2020, are likely to further constrain revenue over the two years through 2022-23.
In 2020-21, falling... Learn More
Labor Costs for 2023: $25.1B
Over the five years through 2022-23, the Universities industry's revenue is expected to grow at a compound annual rate of 1.3% to £47 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. However, with tuition fees frozen since 2012, record inflation throughout 2022 has meant their real value has plummeted. The cap on undergraduate student numbers in the UK was lifted in 2020-21, leading to a rise in... Learn More
Labor Costs for 2023: $23.2B
Temporary-Employment Placement Agencies' revenue is forecast to decline at a compound annual rate of 3.4% to £41.4 billion over the five years through 2022-23. The COVID-19 outbreak meant key employers of temporary workers in the sports and music events spaces completely shut their doors and businesses froze hiring, reducing clients for agencies. Sign-ups for temporary employment declined, hitting revenue in 2020-21. Companies pressed play immediately on hiring as the economy reopened in 2021-22 with record vacancies particularly in the service sector, boosting revenue for recruiters.
A tight labour market is encouraging employers to rely on temporary-employment placement agencies to fight... Learn More
Labor Costs for 2023: $22.8B
Over the five years through 2022-23, revenue is projected to climb at a compound annual rate of 2.3%. This growth has primarily been driven by an enhanced demand for IT consulting services. In addition, regulatory changes in the financial services sector, the industry's largest downstream market, have benefitted the industry, as banks and other financial institutions have required assistance to reformulate business strategies and operations to comply with new policies.
Plunging business confidence following the COVID-19 outbreak reduced demand for consulting services in 2020-21, as downstream companies held back on expanding their operations in the immediate aftermath of the outbreak. In... Learn More
Labor Costs for 2023: $21.6B
Following significant government support, 80% of secondary schools are now academies, with maintained schools increasingly converting. Both types remain under strict government guidelines, but academies can decide term dates, curriculums, subject choices and budget decisions. Despite several years of economic turmoil, government funding has remained strong because of the importance of maintaining and improving UK education standards.
Secondary education revenue is expected to have grown at a compound annual rate of 2.2% to £54.5 billion over the five years through 2022-23, dipping by 2.1% in 2022-23. The COVID-19 outbreak severely disrupted the day-to-day running of schools throughout 2020-21, with temporary closures... Learn More
Labor Costs for 2023: $21.1B
Industry revenue is expected to grow at a compound annual rate of 0.5% over the five years through 2022-23 to reach £190.8 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 because of intense price competition on 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... Learn More
Labor Costs for 2023: $19.9B
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 2.4% to reach £112.9 billion.
The outbreak of COVID-19 (the coronavirus) necessitated the release of significant government funding to help hospitals boost their capacities to treat afflicted patients. NHS funding rose from £148.9 billion... Learn More
Labor Costs for 2023: $18.7B
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.
Over the five years through 2022-23, industry revenue is forecast to grow at a compound annual rate of... Learn More
Labor Costs for 2023: $17.0B
Over the five years through 2022-23, UK banks' revenue is expected to decline at a compound annual rate of 0.5% to £109.6 billion, including anticipated growth of 14.8% in the current year. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.
The COVID-19 outbreak triggered a dramatic decline in revenue... Learn More
Labor Costs for 2023: $16.5B
Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. Despite operators being remunerated for completing new building and infrastructure construction contracts or 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 new dwellings construction, while civil engineering specialists afford clients services across the infrastructure value chain. Moreover, some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.
Over the two years through 2019-20, revenue grew,... Learn More
Based on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Least Risky Industries in the UK in 2023
VIEW ARTICLEBased on the expert analysis and our database of 440+ UK industries, IBISWorld presents a list of the Biggest Industries by Employment in the UK in 2023
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