Businesses struggle to fill vacancies. There are currently 1.3m open positions in the UK and unemployed people, leaving companies with gaps in their workforce.
According to the Office for National Statistics, more than a third of companies claim they have difficulty filling vacant positions.
There are currently 1.3m jobs available in the UK, which is the most since comparable figures were first published in 2001. This is a 62 percent increase in job openings since the outbreak.
The current situation is that more jobs are available within the UK as there are jobless people. This is only the second time this has been the case.
This means that the UK is predicted to have the lowest growth rate of the G7, the world’s most prosperous nations, as per the IMF, which is forecast to reach less than 0.5 percent by 2023, compared to the 2.3 percent forecast just in April.
Which industries have difficulty filling vacancies?
- Food and accommodation +107%
- Financial and insurance +90%
- Communication and information +84%
- Technical, scientific and professional +79%
- Defense and public administration +77%
Why do businesses have trouble finding jobs?
Hospitality, the most affected sector in terms of jobs, depends on youngsters working as waiters and bar staff. According to the Institute for Employment Studies, fewer young people are employed because of a declining population and an increased number of college students taking full-time courses post-pandemic.
Certain older workers have gone off the market following the pandemic and have not returned.
It could also be because NHS wait lists indicate that long-term illnesses are not being addressed, so the older workers aren’t able to return to work.
Furthermore, Brexit has created regulatory barriers between hospitality companies and a large pool of EU workers.
More than 8 million people are deemed “economically unviable” out of an estimated 67 million population.
What can business owners do?
Based on a survey conducted by the Chartered Institute of Personnel and Development, The survey found that 44 percent of employers have to raise the amount of pay they pay their employees.
Some observers are not thrilled by the thought of owners of small businesses being forced to pay more for staff. Many of these jobs are in retail and hospitality and seasonal farm jobs, and other jobs that have been called “McJobs” and are not considered fulfilling careers. Small-scale business owners have been doing for decades as they claim, making the minimum amount they can afford and relying on cheap foreign labor.
Laurence Turner, head of research and policy for the GMB’s policy and research department GMB on broadcaster’s Newsnight: “There’s been a long period of stagnant wage growth … employers cannot afford not to put up wages … this is just a nettle that the government and employers are going to have to grasp.”
Three-quarters of employers are retraining their personnel to fill the new roles they have to reload.
A whopping 38 percent of companies are making the job opportunities more adaptable.
It’s unclear the length of time this job vacancy crisis will be. If the grim economic forecasts come to pass, it could be that many of these job vacancies will vanish when businesses fail.