Candidate shortage still biting growth

FIRMS are struggling to hire suitably qualified staff amid a shortage of candidates, especially in nursing and engineering, according to a study.

Research among 400 recruitment agencies found that employers were having to increase starting salaries to fill vacancies.

The Recruitment and Employment Confederation (REC) and KPMG said their survey suggested firms were hiring new staff at near record rates.

James Stewart, vice chairman of KPMG, said: “With the jobs market so heated, businesses across the country, of all types, are struggling to find work-ready staff.

“Particular pinch points include IT, engineering, nursing and care staff. Some clients tell us they are seeing the worst period of staff availability for 20 years.

“A four-decade low in unemployment and a dwindling supply of EU workers means good candidates are at a premium. Consequently, we’re seeing wages pushed upwards and a trend of canny workers job-hopping to secure a pay rise rather than remaining loyal to their existing employers.”

Neil Carberry, chief executive of the REC, said: “Skills shortages are a long-standing feature of our economy. They affect the ability of employers to grow and create jobs.

“That we have shortages in key skilled roles like IT, engineering and health is a sign that the right training and support is not in place for people to progress into these jobs from lower skilled work.

“A new partnership is necessary in our NHS. As we head towards winter we are once again seeing potential shortages of nursing, medical and social care staff.

“Working with recruiters to address this should be a Government policy priority. Without access to agency workers key frontline services could be put under threat.”