Industries with the Highest Labor Costs in the UK in 2022

1. Charities in the UK

Labor Costs for 2022: $26.5B

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

2. Universities in the UK

Labor Costs for 2022: $22.9B

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. 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

3. 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

4. Management Consultants in the UK

Labor Costs for 2022: $20.3B

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 2022-23, industry revenue is expected to grow at a compound annual rate of 2.2% to reach £70.2 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

5. General Secondary Education in the UK

Labor Costs for 2022: $20.1B

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.

Over the five years through 2022-23, industry revenue is anticipated to grow at a compound annual rate of 1.9% to reach £53.9... Learn More

6. Supermarkets in the UK

Labor Costs for 2022: $20.0B

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

7. Hospitals in the UK

Labor Costs for 2022: $18.8B

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

8. Computer Consultants in the UK

Labor Costs for 2022: $16.8B

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

9. Banks in the UK

Labor Costs for 2022: $15.9B

Over the five years through 2022-23, industry revenue is expected to decline at a compound annual rate of 2.1% to £101 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.

The outbreak of the COVID-19 (coronavirus) pandemic had a significant effect on the industry, with industry revenue falling by 14.2% in... Learn More

10. Construction Contractors in the UK

Labor Costs for 2022: $15.3B

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