Three quarters of UK firms have been hit by labour shortages in the past 12 months, according to a survey conducted by the Confederation of British Industry (CBI).
According to the survey, 72% of firms believe the issue is a threat to labour market competitiveness.
The CBI reported that ‘shortages in the labour market are having a material impact on firms’ ability to operate at full capacity, let alone grow’. Many businesses have responded by investing in training, while also increasing pay and improving offers to employees to help retain workers and attract new recruits.
Matthew Percival, Director for Skills and Inclusion at the CBI, said: ‘Businesses are pulling every lever they can to attract and retain employees, but this is making productivity boosting investments like training and automation harder.
‘To go for growth and build a higher-wage economy we will need to ease shortages to create the conditions for higher investment. That means helping more British workers to overcome barriers into the workplace, like a lack of affordable childcare, and taking a pragmatic approach to immigration.’