Firms impacted by skills shortages as vacancies reach record high - Chamber

Job vacancies reached a record high between December and January - a clear sign that businesses are struggling to find the right talent, business leaders said today.

According to new figures from the Office for National Statistics (ONS), the number of UK job vacancies rose to 1,298,400 - an increase of 513,7000 from its pre-pandemic level.

However, the rate of growth in vacancies slowed to 9.6 per cent, down from 24.7 per cent in the previous quarter.

In the West Midlands, the employment rate rose by 0.8 per cent between October and December, but unemployment increased by 0.1 per cent over the same period.

Over the year, the region 's unemployment rate climbed 1.8 per cent, with employment falling 1.4 per cent.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said: “While it is encouraging to see a significant rise in the West Midlands employment rate towards the end of last year, the regional unemployment rate remains high, as residents remain unable to access opportunities in the region and businesses are unable to access the skilled talent they need in order to thrive and grow.

"This is an ongoing trend which is likely to be reflected in our latest Quarterly Business Report.

“Upskilling local talent and overcoming these ongoing recruitment difficulties are set to be key themes in the Chamber 's upcoming Growth Through People campaign, taking place throughout March.

“Growth Through People will feature expert-led events, webinars and digital content with advice and insights on topical leadership and people management challenges including cultivating an employer brand and thinking outside of the box to unlock potential.

“I highly encourage readers interested in attracting new talent and getting the most out of their existing workforce to get involved in the campaign and register to attend our Growth Through People conference at the end of March. ”

Meanwhile, the West Midlands ' economic inactivity rate fell by 0.8 per cent to 21.0 per cent and Saira Demmer, chief executive of Chamber patron SF Recruitment, said this indicates people are being enticed back into work.

She said: “An interesting set of results this quarter as we are starting to see the peak of the current 'hot ' employment market.

“Not only is employment at record highs, but the economically inactive are starting to be enticed back into the workforce which will ease some of the candidate shortages and wage inflation we have seen over the last 12 months.

“This is good news for employers who will be better able to hire the talent they are looking for and in the longer term good news for employees too as it will go some way to dampening escalating inflation. ”

Click here to find out more about the Chamber 's Growth Through People campaign events, webinars and conference.

Click here to complete the Chamber 's Quarterly Business Report Survey.