7 in 10 SMEs struggling with recruitment

  • Business Advice
7 in 10 SMEs struggling with recruitment
Peninsula Logo

Peninsula Team, Peninsula Team

(Last updated )

Seven in ten employers across the UK are still witnessing a shortage of all types of candidates for their roles, according to a survey by the Recruitment and Employment Confederation (REC)

Small employers are having even more problems as more than 80% of those with fewer than 50 staff told the REC that they struggled to find workers.

Despite a year of slower economic growth and lower overall hiring, this shows that the UK jobs market is still struggling to meet employers’ demand, the REC argues. The challenge facing policymakers and employers is, it went on, to stop these ongoing candidate shortages constraining the economy if economic growth returns this year.

REC Chief Executive, Neil Carberry, said: “Companies reporting persistent hiring difficulties comes as no surprise to us at the REC. Too few firms have appreciated that — despite slow growth — our jobs market has changed fundamentally. Only 9.5% of firms told us they were looking to temps, freelancers and contractors to help.”

The debate has to change if the economy is to reach its full potential and boost prosperity, public services and incomes, he continued, highlighting REC’s manifesto, Dynamic Labour Markets for Growth, which sets out some key steps that the REC says can be taken in the upcoming Budget.

Mr Carberry pointed out that there were 1.7 million active job postings in December 2023 and with a reported 10% surge in demand for staff across the economy, and the labour market restricted by shortages, this could lead to a 1.2% fall in expected GDP and productivity by 2027.

And that, he concluded, could cost the economy anywhere between £30 billion and £39 billion every year.

Visit BrAInbox today where you can find answers to questions like What is blind recruitment?

Related articles

  • gavel in court room

    Blog

    The new HR laws expected in 2024 (and how to prepare)

    The government has confirmed at least 10 new laws for 2024. We expect to see changes around leave entitlement, pay and benefits, working patterns, and more. So to make sure you understand how all these updates will affect you, here’s a roundup of what’s coming in the year ahead…

    Kate PalmerHR Advice and Consultancy Director
    • Employment Law
  • Increased flexible working opportunities

    Blog

    Five ways UK flexible working rules will change

    The future of flexible work is changing – and soon. In under two months, you’ll need to change the way you handle flexible working requests to meet UK law.

    Kate PalmerHR Advice and Consultancy Director
    • Employment Law
  • Bodyshop goes into administration

    Blog

    Peninsula TeamPeninsula Team
    • Business Advice
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and health & safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.