The Talent Shortage is Impacting Small Companies the Most 

In a recent survey conducted by the Recruitment and Employment Confederation (REC), it was found that seven out of ten employers across the UK are still facing a shortage of candidates for various roles. This shortage spans across all types of positions, indicating a significant challenge for businesses in the current job market landscape. 

The survey revealed that more than four out of five small employers, those with less than 50 staff, reported shortages of candidates, highlighting the pervasive nature of the issue. Even amidst a year of slower economic growth and reduced overall hiring activity, the UK job market is still struggling with meeting the demand for skilled workers. 

The long-term economic impact of candidate shortages 

The survey’s findings hold significant implications for the UK economy, as continued candidate shortages can hinder productivity and economic growth. With 1.7 million active job postings in December 2023 and a projected 10% surge in demand for staff, the economy faces the risk of a 1.2% decline in GDP and productivity by 2027. This could result in substantial economic losses amounting to billions of pounds annually. 

The importance of a good recruitment partner 

Neil Carberry, the Chief Executive of REC, emphasised the importance of recognising the fundamental shift in labour market dynamics. He highlighted that despite current economic uncertainty, the demand for skilled workers remains high, necessitating a re-evaluation of recruitment strategies. Carberry said there is a need for businesses to explore alternative hiring options such as temporary workers, freelancers, and contractors to address immediate staffing needs. 

Furthermore, Carberry stressed the role of recruitment agencies in facilitating effective talent acquisition. He reinforced the value of partnering with recruitment agencies, particularly for small firms, citing their expertise in reaching diverse candidate pools and providing innovative hiring solutions. Carberry cautioned against prioritising cost-cutting measures over value-driven recruitment processes, stressing that investing in quality recruitment is essential for long-term success. 

REC’s recent survey sheds light on the continual candidate shortages plaguing the UK job market and stresses the urgency of adopting proactive measures to address this issue. By embracing innovative recruitment strategies and leveraging the expertise of recruitment agencies, businesses can navigate the challenges posed by candidate shortages and drive sustainable growth in the years to come. 

Discover more advantages to using a recruiter in your hiring process. 

We’re here to help 

As experts in the technology recruitment field, not only can we source leading talent in the market but also offer advice on your hiring process. From providing tips on your job specifications to giving you accurate insights on competitive remuneration packages, we can help you refine your hiring process and attract hard to find talent. 

Get in touch with a member of our team today and see how we can help you turn things around.