Employers have stepped up hiring plans to levels not seen since the 1990s as they struggle to find suitable candidates, a labour market survey shows.
Hiring intentions have jumped to a 30-year high after the pool of available workers shrank during the pandemic, according to research by Manpower.
The recruitment group said Brexit led to shortages in the labour market, a situation that had been made worse by the Covid-inspired “Great Resignation” where people leave the workforce or switch careers.
Britain’s technology sector is growing its workforce at a record pace, with almost half of firms planning to increase headcount in the first quarter.
Companies are having to expand their IT and digital teams to adapt to new patterns of working and consumption, the report said.
Advertisement
Chris Gray, director of Manpower Group UK, said: “We’re often faced with touch screens when we shop, and ordering from our smart phones in restaurants. The acceleration of British businesses’ digital transformation is increasing the demand for new and emerging skills.
“Supermarkets, shops and restaurants up and down the country are relying on technology to address the fact that they’re faced with a shortage of candidates. Not only that but they’re keen to continue their investment in providing shoppers with the convenience, choice and competitive pricing brought on by online ‘pandemic’ shopping.”
Manpower said that companies in many industries cannot hire enough workers with the right skills to match their growth plans.
The survey of 2,033 UK employers is a closely watched gauge of the labour market, monitored by the Bank of England, which on Thursday will decide if it will raise rates for the first time since 2018. The tight labour market could be a source of inflationary pressure.
Gray said hiring intentions continue to grow because employers cannot find suitable recruits in Britain’s “smaller and more selective workforce”.
Advertisement
“The challenges in recruiting staff in warehousing and logistics have been well documented, but now we’re seeing growing labour shortages among highly skilled workers,” Gray said. “Those with the in-demand skills hold the power, and have the freedom and flexibility to accept a job that suits their particular needs and expectations.”
