UK businesses struggle to recruit staff needed to fill key roles

Employers are still grappling with labor shortages and will need the entire population of Birmingham twice to fill every job opening, according to Britain’s latest labor market snapshot.

Employers ran active job advertisements for 2.25 million jobs in the week ending July 9 — up 53 percent from the equivalent period in 2022, according to the latest data from the Employment and Employment Association.

They placed 193,000 new job ads that week, which was 9 percent higher than the previous year. The REC said companies have also left job postings open longer than usual due to difficulties finding people.

The findings indicate that employers are in a relatively confident mood about future demand, but have raised concerns that shortages could push up wages and lead to higher selling prices and new inflationary pressures.

said Neil Carberry, CEO of REC. “It would take about twice the population of Birmingham to fill all these jobs.”

Notable increases in job postings for driving instructors, paramedics and animal care services showed some of the biggest pressure points. Previous REC research found a shortage of bar staff, waiters, bakers and chefs. Bars, cafes, restaurants and other hospitality businesses have had to reduce opening hours, service offerings or trading days, Carberry said, despite heavy demand.

“It is extremely frustrating for hospitality companies that they cannot fully capitalize on the strong demand expected this summer due to the failure to overcome the labor shortage. Wages have risen rapidly in this sector and companies have invested much more in hospitality career development, but even this is not enabling companies to move quickly enough.”

REC results contrast with some other sources in the labor market. Reed Recruitment said last week that the number of jobs listed on its sites in the three months to June had fallen by about a quarter, and suggested Britain could be headed for recession.

Wages rose at a record pace in the three months through May, according to the Office for National Statistics last week. Average wage growth rose from 7.2 percent to 7.3 percent.

Brexit, Covid, and high rates of inactivity among parts of the working-age population have all been cited to explain the labor shortage.

Colin Schott, owner and founder of soft facility management service provider SBFM, believes ex-offenders and leavers of care should be given more opportunities to fill the labor shortage. He said: “There is a simple solution for employers suffering from a labor shortage, and that is to put trust in ex-offenders and leave care. There is a misconception that these groups do not deserve a chance. But rehabilitation is possible, and many ex-offenders and care leavers are highly skilled workers. We work with prison leavers and local employers who are ready to offer their expertise and guidance on skills, qualifications and training, and have witnessed how showing trust and confidence in them can transform their lives. Prison leavers need security and stability. This is an opportunity for companies to help bring about positive social and economic change and Filling the labor shortage in the process.”

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