REC jobs reports details effect of skills shortage
The Markit/Recruitment & Employment Confederation (REC) Report on Jobs has shown that permanent staff placements continued to rise in May, but this increase is at an eight-month low. The upward trend for temporary and contract billings also lessened.
The decrease in hiring is a contrast to job vacancies, which rose last month. A potential reason for this is a lack of candidate availability, which dropped to its lowest rate for over two years.
Kevin Green, CEO of the REC and a member of Recruitment Grapevine’s advisory board, says: “UK businesses are now facing candidate shortages in nearly every sector of the economy. From engineering firms, to catering companies, schools and hospitals, we need more people with the right skills for the jobs that are available. Despite this, employers are showing uncertainty about hiring in the run up to the EU referendum.
“Whatever happens [after] June 23rd we need to ensure a sensible approach to immigration is taken, so that employers have access to the people they need. Sourcing workers from outside the UK is going to be an ongoing necessity if we are to continue seeing the British economy grow.
“The hospitality sector is a case in point. The latest data shows a surge in demand for staff from hotels and restaurants, as they expect many holidaymakers to stay in the UK this summer rather than travel abroad.
“The UK job market has been incredibly successful over the last seven years because of its dynamism and flexibility. Policy-makers have a responsibility not to derail that success.”