British companies’ struggle to recruit staff remains at record levels and solutions are urgently needed to tackle the “crippling” labour shortages, which are putting livelihoods at risk and damaging the economy, according to business leaders.
New figures from the British Chambers of Commerce (BCC) revealed that 61% of companies were attempting to recruit staff in the second quarter of the year, compared with 60% in the first three months.
However, the survey of 5,700 businesses showed that 76% of firms continue to report recruitment difficulties, against 78% in the first quarter.
The biggest challenges were in the construction sector, with 83% reporting difficulties, followed by production and manufacturing on 79%, logistics on 79% and hospitality on 78%, according to the BCC’s Quarterly Recruitment Outlook.
“Businesses remain under huge pressure to fill jobs, but record levels of recruitment difficulty are showing no signs of improvement. Solutions are urgently needed, so that firms can keep their doors open throughout these tough times,” said Jane Gratton, head of people policy at the BCC.
“We have written to the government outlining a three-point plan on how they can work with businesses to solve this.”
The BCC said firms must be encouraged to find new ways of unlocking pools of talent, by investing more in training, adopting more flexible working practises and expanding use of apprenticeships, while the government must help employers invest in training by reducing the upfront costs on business and providing training related tax breaks.
It also said the government must reform the Shortage Occupation List (SOL).
“There are 1.3 million unfilled jobs in our economy and now fewer people in the workforce than before the pandemic. This is holding back productivity and growth, and employers are at their wits’ end. It is putting livelihoods at risk and damaging the economy,” Gratton said.
“The government must reform the SOL criteria to include more jobs at more skill levels to give firms breathing space to invest in their workforce.
“Employers cannot wait for a new Prime Minister before this is sorted. Shortages are impacting not only on their ability to service order books but also on the morale and wellbeing of their people.
“The economic challenge we are facing is huge and unless we start to fill the hole caused by 1.3 million vacancies, we cannot get back to growth.”