'Skills shortage' growing in UK as job candidate availability plunges
By Oliver Haill
Date: Tuesday 09 May 2017
(ShareCast News) - Even two years away from Brexit, UK employers are already complaining of a shortage of suitable job applicants for a wide range of roles.
Research from the Recruitment & Employment Confederation carried out by Markit found April saw the steepest decline in the availability of job candidates in 16 months, as the availability of permanent and temporary candidates both deteriorated at a sharper rates in April.
Growth in permanent staff placements slowed to its weakest for seven months during April, but remained at a solid overall level, though for temp workers it increased at the fastest pace seen so far this year.
Amid the lowest unemployment since 2005, demand for staff is growing in all sectors and all regions, but there are fewer and fewer people available to fill the vacancies, said REC chief executive Kevin Green.
He said workers are becoming more hesitant about moving jobs amid Brexit uncertainty, while the weakening pound and lack of clarity about future immigration rules is putting off some EU nationals from taking up roles in the UK.
"As a result, candidate availability is at a 16-month low and recruiters are flagging a shortage of suitable applicants for more than 60 different roles from cleaner to accountant. Every shortage has wider implications, for example the exceptional reputation UK engineering enjoys globally is at risk because employers can't find people with the skills they need," he said.
Starting salary growth for permanent workers slowed to a four-month low in April, but was said to remain sharp overall and stronger than the series average.
Drilling down into the data, the Midlands and Scotland saw the fastest rate of expansion in permanent placements, and London the slowest.
Engineers, IT and computing workers and nurses and other carers were the most in-demand permanent workers, with temp led by nursing and medical followed by hotels and catering staff.
Prime Minister Theresa May said earlier this week she will again pledge to cut net migration to the "tens of thousands" as part of the Conservative general election manifesto.
Amid an ever-shrinking pool of suitable candidates, the REC's Green said whichever party forms a government after the election would need to invest in skills and career advice for UK jobseekers, as well as safeguarding access to the workers we need from abroad.
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