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- Jo Faragher
Employers are twice as confident about the economy as they were this time last year and many intend to take on more staff in coming months, according to the REC.
However, growing skills shortages could be poised to deflate the current jobs boom, the findings of July’s Jobs Outlook survey suggest.
A third of employers surveyed in June predict a shortage of engineers to fill permanent (32%) and temporary (34%) technical and engineering jobs.
Over a three-month rolling average of responses, a fifth of employers predict difficulties recruiting permanent candidates in this sector, while a quarter say they will struggle to fill temporary roles.
Almost two thirds of employers across all sectors say they use agency workers because temporary staff provide ‘short term access to key strategic skills’. This comes in contrast to historical responses such as covering leave, or keeping running costs down. Nearly half said they chose to use agency workers to respond to growth.
Despite skills shortages, hiring intentions remain high, with almost nine in 10 employers planning to take on permanent staff in the next three months, and 47% planning to increase the use of agency staff over the quarter.
REC chief executive Kevin Green said that employers would have to work harder to attract candidates.
“Skilled individuals are scarce in technology, engineering, construction and HGV driving, and companies are already increasing pay to encourage people to jump ship and join their workforce,” he said.
“However, attracting talent goes beyond focusing on pay packets – workers are increasingly looking for more flexible hours, better benefits packages and nicer work environments. Your company brand and reputation are crucial to ensuring you are more appealing than your competitors to the workers you need to attract.”
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