Our latest Quarterly Recruitment Outlook was published on Tuesday showing that hiring remains static as firms deal with increased labour costs. Here are the key data takeaways from our survey of over 4,500 firms
Recruitment remains static with 55% of firms attempting to hire staff in the last three months (compared with 54% in Q1)
– Hiring remains challenging despite some respite, with 73% of firms reporting difficulties in Q2 (76% in Q1)
– Transport and logistics (80%) and construction (77%) sectors were most likely to be facing recruitment problems
– 23% of businesses increased the size of their workforce in Q2, compared with 20% in Q1
– Only a quarter of firms (25%) expect to increase the size of their workforce over the next three months
The hiring landscape varies for different sectors, with recruitment difficulties in transport and logistics companies remaining the highest at 80% (compared with 82% in Q1) followed by construction and engineering business at 77% (83% in Q1).
Most firms didn’t increase the size of their workforce in Q2, with 60% saying staffing levels remained the same. However, 23% did increase their staff numbers, up slightly from 20% in Q1. Looking forward, firms are less optimistic – with only a quarter (25%) expecting to boost their workforce over the next three months, compared with 27% in Q1.
Babs Murphy, Chief Executive of North & Western Lancashire Chamber of Commerce said:
“While it is still early days, firms are beginning to sound the alarm on the impact of NICs and other employment costs. There could a big shock coming further down the line.
“Increased labour costs and persistent skills shortages are making recruitment a significant challenge for SMEs.
“Firms tell us they are having to adjust budgets, especially for workforce growth and people development. Whether that is recruiting fewer staff, not replacing staff who are leaving, or scaling back training budgets – there is no doubt that higher employer costs are having an impact.
“At the same time, growth and productivity is being stymied by persistent skills shortages, particularly in sectors like transport, logistics and construction.
“We need urgent action by policymakers to tackle the long running skills crisis. That means a more flexible and responsive training system, better support for people facing barriers to work, and a firm commitment to no further tax hikes on business.”
