According to the East Midlands Chamber, there may currently be a “monumental skills shortfall” preventing businesses from adding jobs. Although it has increased for the first time in ten months, the East Midlands’ unemployment rate is still far lower than the national average.
The new survey by the East Midlands Chamber discovered that for the first time in ten months, the unemployment rate in the East Midlands increased, but it is still significantly lower than the national average. The ONS (Office for National Statistics) regional figures for May to July show that it increased to 2.8% from a record low of 2.4% from April to June this year. 3.6% of the population in the UK was unemployed at the time.
The region’s economic inactivity rate, which counts the number of working-age persons who have left the workforce due to causes including retirement, care responsibilities, chronic illness, or education, is still 21.9%. Three percentage points higher than where it was before Covid, which was 18.7% from January to March 2020. It is among its greatest levels over the past year.
The chief executive of the East Midlands Chamber, Scott Knowles, stated: “Our region’s businesses continue to create a lot of jobs, but we’ve been saying for the past year how this could tip at any moment given the tremendous skills shortage that is restricting the capacity for four out of ten East Midlands businesses.
According to our most recent Quarterly Economic Survey, 82% of the businesses in the region’s recruitment attempts between April and June struggled to fill positions. It is unsustainable, and while the region’s unemployment rate continues to be close to a record low, the fact that economic inactivity is not decreasing suggests that some businesses are abandoning their plans to expand in light of the shrinking labor pool and the extreme uncertainty in the economic environment, which is brought on by an escalating crisis in the cost of doing business.
Read to know more: How to Hire Overseas Workers to fill Recruiting Gaps in the UK.
Although the energy strategy of the new prime minister, Liz Truss, was well received, more information is required to give businesses long-term stability. Nevertheless, the government must be mindful of the additional demands on companies and collaborate with them to find long-term solutions to the problems we confront.
It entails revising the list of in-demand professions to include more positions throughout the skill spectrum, encouraging companies to engage in employee training, and lowering trade barriers.”
The most difficult skill sets to fill involved:
The most difficult skill sets to fill involved:
- IT, digital, and engineering skills.
- Construction skills.
- Manufacturing skills.
- Health and social care (including nursing).
- Accountancy, finance, and legal.
- Hospitality & retail (including restaurants & bars).
- Retail & customer service salespeople – often referred to as ‘backroom’ workers who provide the face-to-face contact with customers that’s vital for a business’s success but aren’t well represented in wider recruitment campaigns due to a lack of visibility within their chosen careers.
The skills shortage is affecting many businesses in East Midland, making filling vacancies hard. Dynamic Staffing Services plays a major role in fulfilling the skill shortage by recruiting talents worldwide. If you are looking to recruit candidates to fill the skill shortage, ring us at +91-11-40410000 or email us at enquiry@dss-hr.com.
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