Firms still face talent shortages despite improving job figures - Chamber

Business leaders say latest job figures are a “stark illustration ” of talent shortages facing West Midlands firms - despite an improvement in employment and unemployment rates.

New figures from the Office for National Statistics revealed West Midlands unemployment fell by 1.1 per cent during the April to June period, with the employment rate increasing by 1.6 per cent.

However, unemployment remains above the national average.

Greater Birmingham Chambers of Commerce said the improving employment rate was “heartening ” but warned there may be a rise in redundancies when the furlough scheme ends.

Emily Stubbs (pictured), policy and projects manager at the Chamber, said: “The record increase seen in the West Midlands employment rate is heartening as the region continues towards economic recovery from the impact of the coronavirus and restrictive measures.

“However, the regional unemployment rate remains above the national average. While we have not yet seen a rise in redundancies, unemployment may likely increase again in the near future as the furlough scheme ends.

“While those seeking jobs face record numbers of vacancies, skills gaps and the changing needs of the workforce have resulted in ongoing recruitment difficulties, restricting business growth.

“We will be discussing the post-pandemic skills gap in Greater Birmingham with stakeholders and business leaders at the Chamber 's next virtual Quarterly Business Report Briefing, which I encourage interested readers to attend.

“As restrictions ease and demand rises, businesses also continue to face challenges in ensuring that staff, clients and customers remain safe amid the ongoing pandemic.

“The Chambers are working with Birmingham City Council to identify local ambassadors for Covid-19 best practice in the workplace. If this sounds like you, please do express your interest and get involved. ”

The difficulties faced by firms across the country when recruiting was underlined by a record high number of vacancies - which grew by 43.8 per cent to 953,000 from May to July.

Saira Demmer, chief executive of Chamber patron SF Recruitment, said the picture could improve in early 2022 if the UK emerges from the winter without further Covid disruption.

She said: “A 43.8 per cent rise in vacancy rates compared with only 0.3 per cent rise in the employment rate is a stark illustration of the talent shortages facing many industries at the moment.

“We are increasingly seeing employers frustrated in their efforts to secure talent and we expect this to worsen over the coming months.

“If the UK can come through the winter relatively unscathed from Covid then we would expect things to improve in 2022. If not, then talent shortages are likely to remain for some time to come. ”

Click here to find out more and register for the GBCC 's upcoming Quarterly Business Report briefing

Click here to find out more and express your interest in becoming a Covid-19 'Business Champion '