The latest ‘Quarterly Recruitment Outlook’ from the British Chambers of Commerce (in partnership with Totaljobs) revealed continued skills shortages in the UK workforce ahead of the Government’s first Budget next month.

Indeed, the report revealed that, while over half of UK firms (55%) were looking to hire, 72% of them had difficulty finding the right talent.

“The figures illustrate a critical skills deficit across the UK workforce, with shortages most apparent in the construction and hospitality sectors — with 79% and 77% respectively struggling to recruit. Two thirds (67%) of construction businesses attempted to recruit in Q4, up from 62% in Q3.

"In both these sectors — and others — uncertainty over the UK’s future immigration regime continues to be a concern.”

Looking ahead, 26% of UK firms say they plan to increase their workforce in the first quarter of 2020, with the construction industry reporting the highest proportion of firms (34%) looking to ‘increase their head-count’.

The report also highlights the need to address critical skills shortages in the upcoming Budget, including commitments to long-term funding for vocational education and for apprenticeships in small and medium-size businesses — “both of which are crucial to the government’s ambition to ‘level up’ opportunities across the UK”.

BCC (www.britishchambers.org.uk) and Totaljobs are also calling on the Government to review the Apprenticeship Levy.

“Greater flexibility for employers on how funds can be used towards vital non-apprenticeship or accredited training could help to make better use of this budget and up-skill the UK workforce”.

BCC director general Adam Marshall said: “Although it is encouraging that businesses are looking to take on people, the prolonged skills shortages they are facing are not sustainable, as they try to shake off years of political uncertainty and pursue growth.

"Training has got to be at the heart of the upcoming Budget, if the Government wishes to demonstrate that it is serious about ‘levelling up’ opportunity all across the UK.

"Funding boosts are needed for vocational and technical education, for apprenticeships, and for incentives to help more employers provide job-related training.”