Nearly half, or 40%, of companies in the UK say staff turnover has increased since June 2016, according to a study from London First and Lloyds Banking Group.

The study, ‘Building the workforce of the future’ also showed that 62% of firms across the UK say they face challenges in hiring the people they need.

The report also pointed to 30% of businesses saying that skills shortages were stopping them from growing revenue or expanding, while 27% say the problem is hindering their ability to compete effectively. But, for many businesses, it’s the impact on their employees that concerns them the most as 46% said that skills shortages meant increased workload and stress for existing staff.

Nearly half (38%) said technical and job-specific skills were the most difficult skills to source, followed by management (30%) and data analysis skills (28%). Many thought these gaps would persist over the next 18 months, reflecting the UK’s long-term challenge in tackling its skills shortages.

“The most important thing to business is being able to hire, retain and train the talented people we need,” Jasmine Whitbread, chief executive of London First, said. “The UK’s employment landscape is changing, with signs people are thinking about their long-term plans as Brexit approaches and the oncoming impact of automation. Companies are stepping up to re-train and re-skill the people we have but, as we prepare to leave the EU, business, government and the education sector need to work together to fill the massive skills gaps currently holding UK businesses back.”

Edward Thurman, Ambassador for London, Lloyds Banking Group, said, “The skills gap in the UK is one of the most pressing economic issues of the moment. It risks hindering businesses growth, competitiveness, and productivity and needs urgent attention.”