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Skills shortage becoming a growing threat to UK business

Paystream News

Michelle Derungs

Thursday 6th Feb, 2014

The growing gap in skilled labour is becoming ever more apparent as time goes on. Although this may spell an optimistic future for highly skilled contractors, what impact is it having on the future growth of UK businesses?

The dramatic decrease in skilled professionals and the recent recovery of the UK economy is irony at its best. UK businesses, now more than ever, are desperately sourcing skilled workers as they are looking to expand to meet the need of the growing UK economy.

A recent report carried out by REC, which is their latest outlook on jobs, pinpointed that 31% of UK businesses claimed that even if given the opportunity for new work, they simply couldn't handle it due to their shortage in skilled labour.

Furthermore, REC's report highlighted that 54% of those surveyed indicated that they are very close to being at full capacity with their workload. In simple terms, this dictates that if these companies were going to expand their work load they would have to take on new staff.

This would be good news for contractors because if the demand for skilled labour outstrips the actual supply of such a workforce it will inevitably result in rising levels of pay rates. However, the same cannot be said for the British economy. Could the lack of skills shortage have a negative knock on effect and push UK businesses back into the recession? Only time will tell...

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