Half of UK businesses complain of difficulties hiring the people they need

Commenting on this morning’s release of labour market statistics that showed a rise in payroll employees to 30 million in May and an increase in the employment rate in the three months to April, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“Today’s data shows that while the labour market has stabilised a little since the acute shortages of late 2021, it remains very tight by historical standards.

“It also confirms a structural shift: more people with home and caring responsibilities are working than before the pandemic, presumably because they can do so remotely, but those excluded from the labour market due to sickness is depressingly far higher. The slight rise in unemployment in the latest data is due to more people starting to look for work, not increased layoffs.

“The latest IoD survey data – from May 2023 – supports the same conclusion of a tight labour market: it shows skills and labour shortages are cited by around a half of business leaders (46%) as having a negative impact on their organisation, second only to more general concerns about the UK economy.”