Last summer we prepared ourselves for a job crisis, instead businesses are struggling to fill positions.
It was reported this morning by The Office of National Statistics (ONS) that job vacancies in the UK have risen above one million; a new record high.
Figures also show the number of payroll employees increased by 241,000 to 29.1m in August, lifting employment in most regions of the UK to pre-Covid levels, the ONS said.
Post-covid and Brexit being contributing factors to the “hiring crisis” it appears, additionally with the labour supply declining, furlough will be the “silver bullet”, Siren Thiru, Head of Economics at the British Chambers of Commerce said, with hospitality, retail and farming being hit the most.
The need for workers has gripped nearly every occupation, yet Britain still has nearly a quarter of a million more people unemployed and looking for work than before the pandemic – not including the roughly one million still on furlough, who many are likely to lose their job once the scheme ends this month.
This surge of job vacancies rose steadily to 75.2% in the three months to the end of July, but remains 1.3% lower than pre-Covid levels.
There is still hope that the end of the furlough scheme will provide a pool of workers. However, this may not meet the demand.
Chancellor, Rishi Sunak, said the latest figures showed the government’s plan for jobs was working, going on to say the rate of unemployment has been falling for seven months in a row. “As we continue to recover from the pandemic, our focus remains on creating opportunities and supporting people’s jobs,” he added. However, analysts say that the mismatch recovery is already losing economic momentum. Many Britons are choosing to leave their jobs, and instead focus their efforts on studying, where they have recognised the importance of skills in the ever changing world. Others have sought out less taxing work, which has left the hospitality industry particularly short of workers.
Workers have also realised that some will have the wrong skills or be in the wrong place.
As we are comfortably within the hybrid way of working, the workforce have identified a more flexible way of working, voicing that many SMEs and business’ in the UK must be above-board if they want to retain their staff. Not ignoring prioritising the wellbeing and welfare of their staff.
Independent British businesses are facing challenges from a multitude of external factors outside of their control and price increases look inevitable across all sectors, as shortages appear elsewhere.
Faltering supply chains and huge spikes in input costs could stifle the strength and speed of any economic recovery for some time as industry leaders and business owners alike, grapple with ever-unfolding events.
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