Job vacancies continued to rise in July, primarily driven by the private sector, but candidate availability fell at the sharpest rate since the survey began in 1997.
This marks the latest in a long line of surveys suggesting that businesses are facing an uncompetitive jobs market, and as a result starting salaries continued to grow substantially in July.
REC CEO Kevin Green said: “The UK’s post-recession problem is skill and talent shortages. The economy is going to be constrained by this ongoing talent crisis if employers keep doing business as usual.
Although the UK still has an unemployment rate of 6.6 per cent, there is concerns that jobseekers do not have the skills which businesses are demanding, resulting in fierce competition for the most able candidates.
Green added “Hirers need to take on more young people and train and develop their employees like never before. Investing in staff development will help companies attract and retain talent. And our policy makers need to put politics to one side and take a sensible approach to immigration which focuses on helping British businesses get the skilled people they need.”
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