Recruitment crisis ‘will hit goods and services’

WEST Midland firms are facing increasing problems in taking on staff, especially in sectors including hospitality and catering, new research suggests.

The British Chambers of Commerce said its survey of more than 5,600 firms found a majority of those in manufacturing and services reported near record high recruitment issues. More than nine in 10 employers in hospitality and catering are having difficulty finding staff, the study indicated.

Adrian Hanrahan, boss of Robinson Brothers, a chemical manufacturer in West Bromwich with over 20 vacancies, said: “We have recruitment issues right across the board, I have never had anything like it before.

“What we are struggling with is getting people in full-time posts, and this has been going on for some time. It includes everything from engineering and maintenance to research, customer services and production operators. It is a real challenge. We have raised our salaries and we still cannot find them, but we are a family business and there are limits to what we can do. Pre-Brexit and pre-Covid we always had one or two vacancies, but this current scale is unprecedented.”

Jane Gratton, of the British Chambers of Commerce, said: “It’s clear that staff shortages are worsening. Firms are struggling to maintain normal operations. While employers are investing more in training, apprenticeships and flexible working practices, this will not improve things overnight. We need Government help to provide a more flexible skills system, rapid retraining opportunities and targeted immigration initiatives to plug skills and labour gaps.

“Wage pressures and energy prices are also ramping up the cumulative costs and there is a limit to how much more can be absorbed before firms are forced out of business.

“If action is not taken then consumers will see reductions in the goods and services into winter.”