Over two-thirds of businesses suffer skills shortage, survey finds

More than three quarters of UK companies say they have been experiencing a trade conflict or slump in investment amid aggravating skills shortages. 

The shortage also has an effect on the company's performance, with 78% of these companies reporting a reduction in production, profitability or growth, whereas 28% of companies reported lay-offs due to the recruitment shortage.

Employee wellbeing has also suffered considerably: 72% of respondents stated that the workload of employees is significantly reduced compared with 56% of firms who felt this way by 2021.

Factors such as the pandemic, Brexit, the war in Ukraine, and rising business costs have all been associated with continuing labour shortages.

 Jane Gratton, director of human resources policy at the BCC, said the country could hardly "ill afford" as they are a "drag on the economy" and an agile skill regime was badly needed.

Last month the Office for National Statistics (ONS) announced that the number of job openings has risen to a new record high of 1.3 million.

Catering made up more than a tenth of the job vacancies which saw rapid job creation after the relaxation of pandemic restrictions.

The Open University report has found that, as a result of this, more than half (52%) of larger companies and 47% of SMEs have declared that next year they will invest more in staff training.