Unrelenting workforce pressures hit the economy 

REACTING to the latest ONS labour market figures, Jane Gratton, Deputy Director, Public Policy at the British Chambers of Commerce said: “Today’s figures showing pay growing at a record annual pace highlight the unrelenting workforce pressures businesses are facing. In a tight labour market, employers are struggling to contain wage inflation as the expectations of their staff and job candidates continue to rise.  

“BCC research published earlier this month shows only a slight fall in the number of firms facing recruitment difficulties. Businesses tell us that access to skilled workforce remains a major concern.   

“In the current challenging economic climate, boosting productivity is essential, and investment in skills is crucial to making that happen. We need the government to create the right conditions. For example, by reducing upfront business costs, enabling a more flexible apprenticeship levy and ensuring more access to rapid retraining courses.    

“Firms who cannot access urgent skills locally are finding themselves locked out of the immigration system because of escalating costs and disproportionate criteria.  We need urgent reform of the Shortage Occupation List to include more roles at more skill levels, when there is evidence of a national shortage.”  

Hull & Humber Chamber's External Affairs Director, David Hooper, said: "Our Quarterly Economic Surveys constantly highlight firms' difficulties in recruiting the right calibre of staff, whether it be factory workers or senior managers, and our Area Councils echo those findings, with major firms struggling to find suitable apprentices and skilled staff in equal measure.

"This means they have to look further afield and pay higher salaries which increases their costs, if indeed they can find anyone at all.

"Bringing people in from outside the area also means their salaries are often spent elsewhere, which is detrimental to our own local economy and high streets which, as we know, continue to struggle as people are more careful with their spending".