Fewer firms recruiting, says BCC survey

The British Chambers of Commerce latest Quarterly Recruitment Outlook reveals hiring intentions have dropped to their lowest levels since the depths of the pandemic.

While Hertfordshire’s Local Skills Improvement Plan report has shown an uplift in the number of organisations targeting growth with more employees, across the country the picture is less rosy.

Only 56 per cent of firms are trying to increase staffing numbers with significant sectoral differences with transport (73 per cent), hospitality (70 per cent) and construction (67 per cent) most likely to be attempting to recruit. The last time the attempted level of recruitment was lower was in Q2 of 2021 when it was at 52 per cent.

Construction and engineering firms are still bearing the brunt of staffing issues, with 85 per cent reporting recruitment problems in Q3, up from 69 per cent in Q1. Manufacturing is not far behind with 80 per cent having difficulty, while 76 per cent of hospitality firms said they could not find the people they needed.

The third quarter of the year also saw a slight drop in funding in workplace training, as 25 per cent of firms reported an increase in investment in staff, down from 28 per cent in Q2. Most businesses (62 per cent) reported no change in their investment plans for training over the past three months, with 13 per cent saying they had decreased it.

Labour costs continue to be the main pressure businesses are facing to raise prices in Q3, with 66 per cent of firms citing them as a worry. This pressure is currently felt most keenly in the transport (76 per cent), construction (74 per cent) and hospitality (74 per cent) sectors.

Responding to the findings, Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce, said: “The percentage of firms holding back on hiring has been rising since the start of 2024. At the same time, firms trying to fill job vacancies are still struggling to find the skills they need.

“There’s considerable uncertainty for business right now. The Government needs to drive growth and ensure there’s no drop in momentum.”