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View All NewsUK – Growing skills shortages could hamper jobs boom
Employers are twice as confident about the economy as they were this time last year and many intend to take on more staff in coming months. However, this jobs boom could be at risk from growing skills shortages, according to July’s JobsOutlook survey from the Recruitment and Employment Confederation (REC).
According to employers surveyed in June, a third of employers predict a shortage of engineers to fill permanent (32%) and temporary (34%) technical and engineering jobs.
The reasons businesses choose to take on temporary agency staff are also changing as the recovery progresses. Almost two thirds of employers across all sectors (64%) say they use agency workers because temporary staff provide ‘short term access to key strategic skills’, a more popular answer than ‘covering leave’ (61%), ‘responding to growth’ (49%) or ‘keeping running costs down’ (30%).
Kevin Green, Chief Executive Office of the REC, commented: “Employers are going to have to work harder to attract candidates as the labour market booms and competition for talent hots up. Skilled individuals are scarce in technology, engineering, construction and HGV driving, and companies are already increasing pay to encourage people to jump ship and join their workforce.”
“However, attracting talent goes beyond focusing on pay packets, workers are increasingly looking for more flexible hours, better benefits packages, and nicer work environments. Your company brand and reputation are crucial to ensuring you are more appealing than your competitors to the workers you need to attract,” he added.
Employers asked about their plans for permanent headcounts in both the short and medium term advised that:
- 87% plan to increase permanent hiring in the next three months
- 78% plan to increase their permanent hiring in the next 4-12 months
When asked about their plans for future use of agency workers in both the short and medium term:
- 47% plan to increase use of agency worker in the next three months
- 42% plan to increase their use of agency workers in the next 4-12 months