Staff shortages impacting productivity especially in hospitality, manufacturing

More than three-The data for the leading business group’s Quarterly Recruitment Outlook (QRO) for Q3 2022 was drawn from a survey of more than 5,100 businesses, 92 per cent of which were SMEs and revealed firms’ recruitment struggles remain at record high levels.

It found that more than half of all businesses (56 per cent) said they are operating below full capacity with the problem most widespread in hospitality (71 per cent).

The BCC said the government needs to work with businesses on solutions including urgent reform of the Shortage Occupation List (SOL).

Attempted recruitment in Q3 remained broadly the same as the previous quarter, with 62 per cent of firms looking to find staff (61 per cent in Q2 2022). But there was a noticeable increase in the number of hospitality firms trying to find staff at 77 per cent, up significantly since the beginning of the year (62 per cent in Q1).

Overall, more tha
three-quarters of firms (76 per cent) attempting to recruit continue to report recruitment difficulties, the same as in Q2. 

The manufacturing sector is facing the most severe recruitment challenges, with 82 per cent reporting difficulties. This is closely followed by hospitality on 81 per cent, logistics on 79 per cent and construction and engineering on 77 per cent.

The impact of this on business productivity is clear to see with 56 per cent of all firms reporting they are operating below full capacity, rising to 71 per cent of hospitality firms.quarters of businesses that have attempted to recruit staff have faced difficulties in doing so, revealed a survey from the British Chambers of Commerce.

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