Analysis
By s1jobs
Described by the Confederation of British Industry as a “perfect storm” engulfing the labour market, staff shortages were a major feature in the news at the end of last week that the UK economy unexpectedly slowed to a crawl in July even though the last of lockdown restrictions had come to an end across England.
Economic output, as measured by gross domestic product (GDP), rose by a mere 0.1 percentage point, far shy of the previous month’s 1% growth and the 0.6% increase many had predicted for July. Of the 26 analysts polled by Reuters, only two had expected such a weak reading.
The Recruitment & Employment Confederation (REC) found there were 1.66 million active job listings across the UK in the last week of August, a number that is only likely to increase in the run-up to the festive period. Shortages will prove particularly acute in sectors such as food production, logistics, retail and hospitality.
When looking at demand for staff on a regional basis, the REC found that six of the top 10 hiring hotspots were in Scotland, a likely knock-on effect from the slower lifting of Covid restrictions in this country.
With employers struggling to fill roles, some restaurants have been forced to choose between operating a lunchtime or evening service, or have been forced to close for entire days. A lack of HGV drivers has left some supermarket shelves bare, and waiting times for large items of furniture such as sofas and mattresses have dramatically increased.
Expert opinion is conflicted on how long this situation will continue with some arguing that the end of furlough at the end of this month – together with the return of university students who make up much of the hospitality workforce – will go a long way towards easing the strain. Others such as the CBI have warned that it will take years for shortages in some areas to be eliminated.
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In the short-term, employers looking to hire will need to come up with ways to set themselves apart from their competitors. This could mean upping starting salaries, offering a wider range of benefits or using apprenticeships to fill gaps.
However, government intervention is also required to align immigration and education policies to help fill shortage roles. The list of occupations eligible for visas should be expanded to include occupations such as butchers, welders and lorry drivers, while those already living here and out of work need retraining to fill the jobs that are in demand.
Search the latest jobs in Scotland at s1jobs.
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