Can Fintech Solve the U.K. Labor Shortage?

In an economic atmosphere beset by looming inflation and supply-chain disruptions, the continuing worldwide labor shortage is becoming a likely contender for the straw that breaks the proverbial camel’s back. This is turning into a particularly vicious problem in the U.K., which is grappling with a sudden shortage of 1.3 million foreign workers thanks to the swift succession of Brexit, COVID-19, and the so-called Great Resignation.

But according to Guy Kashtan, Co-Founder and Chief Executive Officer of fintech startup Rewire, the solution to the labor crisis might just lie within the migrant worker crisis. Kashtan’s company makes use of innovative tech to help international workers manage their money, and that same technology may have the potential to solve British labor problems.

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“Migrants help bolster the workforce by flowing towards industries where there is a relative need for workers, such as the supply chain sector—arguably one of the most affected sectors in the current inflation storm,” Kashtan wrote in an article at the end of July. “And they do this while spending their earnings locally and contributing to their economies back home.”

Echoing the voices of many advocates of migrant workers across the globe, Kashtan is arguing that international laborers, rather than being a cause of worldwide labor shortages, may in fact be the solution to the problem. With the help of Rewire and forward-thinking international banking practices, supporting more efficient cross-border payments might just be the magic bullet that slays the world’s current financial woes.