LONDON - Britain launched a review into its labour market to find ways to ensure workers benefit from Brexit, "Levelling Up" policies and its net zero ambitions, seeking longer-term solutions to a cost-of-living crisis.

"Tackling the economic challenges of today means helping more people into high-wage, high-skilled jobs and this review will look at how we can equip people with the skills they need to thrive in the workplace no matter where they're from," Prime Minister Boris Johnson said.

The government said the review would be led by minister Matt Warman and look into how the government can create a highly-skilled workforce that would lead to better wages and help deal with the cost-of-living issue.

Johnson is under pressure to act quickly and bring about policies to ease the pressure on households, with a survey reporting millions of Britons had to skip meals last month because they could not afford it.

Pay rises have lagged the spike in prices of food and other essentials. Inflation is set to peak at over 10% this year due in part to the war in Ukraine as well as supply chain problems caused by the COVID-19 pandemic and Brexit.

Data earlier on Thursday showing an unexpected contraction in Britain's economy in March did little to lift fears of a recession.

(Reporting by Muvija M; Editing by William James)