Almost two thirds of London businesses are struggling to fill vacancies, while UK firms prepare the biggest pay rise in more than a decade to deal with the continuing skills shortage.
A survey of 1,016 business leaders and HR managers conducted by BusinessLDN found that 77% of firms had open vacancies, while 65% are struggling to fill them.
While companies said they struggled to recruit for all types of roles, finding specialists seemed to be the biggest challenge. Just under half of all businesses reported difficulty hiring for specialist roles.
Technical and skilled support roles, managers and skilled trades were also particularly hard to find.
The most in-demand skills, meanwhile, were “soft skills” such attitude, motivation, or personality.
BusinessLDN chief executive John Dickie said more needed to be done to allow workers to acquire in-demand skills.
“With most businesses running vacancies they can’t fill, it’s vital we unlock the full potential of the capital’s workforce by giving Londoners the skills employers need – whether they are already in work or not,” he said.
“Firms are struggling to recruit across all types of roles, from entry-level posts right through to technical experts, with sector-specific and digital skills most in demand.”
“With the majority of companies looking to increase investment in training, the Government can help ease the current crunch by making existing programmes easier to navigate, providing more online and short modular courses and ensuring current spending is targeted on developing the competencies they need now and, in the future.”
London Chamber Of Commerce and Industry (LCCI) CEO Richard Burge said the findings of the survey were not only a problem for businesses, but also would create challenges further down the line for young workers who may not have the skills empoyers demand.
“It is crucial for Britain to invest in hiring employees with the right skills and talent, as they boost productivity and drive economic growth of our country.
“As reiterated by London businesses in LCCI’s quarterly Skills Survey, skills shortages not only stunt business growth and affect employment but also have long-term implications for the future of our young professionals. In an environment where demand is outpacing supply, skilled workers are the backbone of our fragile economy.”
The survey comes after new data from the Chartered Institute of Personnel Development (CIPD) found median annual pay for UK workers in 2023 is expected to rise by 5% as employers struggle to fill vacancies.
This was the highest increase since the CIPD began reporting this data in 2012.
The organisation noted that this increase just covered basic pay at the same roles, and the rise in workers’ compensation is likely to be larger when bonuses and job-switching are included.
CIPD labour market economist James Cockett said the expected pay rise was a natural consequence of the economic environment.
“With the highest levels of inflation seen in 40 years, this is more of an inevitability at this stage,” he said.
