Is the UK labour shortage holding back your hiring plans?

According to a survey by the British Chambers of Commerce, 82% of companies experienced recruiting difficulties in Q4 2022, up from 76% in Q3. 

There are currently around 1.12 million job vacancies in the UK. This is a slight decrease compared to the previous quarter, but the number is still far higher than it was prior to the pandemic. 

According to a recent report, 78% of UK organisations say they’ve seen reduced output, profitability or growth due to these skills shortages.

What Are the Factors Causing a Shortage of Labour? 

There are three primary factors driving the UK labour shortage in 2023:

1. A shift in labour supply and demand post-pandemic
2. A rise in early retirements
3. The impact of Brexit on labour supply

All of these make sourcing and hiring the right people difficult. But, there are ways to increase your chances of attracting great talent even when the market is tight. 

How Should Employers Combat the UK Labour Shortage? 

There are five key things that employers should consider to address the labour shortage: 

1. Rethink your hiring process in general 
2. Work to attract and retain over 55s 
3. Think about the benefits you use to attract talent
4. Upskill and reskill your current employees 

The last thing you should consider is investing in an all-in-one HR software. One that can help manage the entire employee journey, from sourcing to recruiting, onboarding through to performance and offboarding. 

Taking that entire journey into account can help recruit great talent, and keep them around. Personio helps by automating, simplifying and streamlining key HR processes, finding great talent and hiring them in record time. 

Want to learn more? Discover the Personio advantage today.