The majority of British companies do not believe David Cameron’s target of ‘full employment’ in the next five years is achievable.
A total of 71% of businesses believe that there are various barriers to meeting that goal, according to the study by totaljobs.
Nearly a quarter of businesses said they had experienced poor growth due to a dwindling talent pool, despite 95% of firms looking to hire.
Some 55% of companies said they were experiencing a skills shortage while 43% of jobseekers said they were hunting for desirable roles as opposed to any role.
The results, which were taken from a survey of 100 UK companies and more than 4,000 jobseekers, found that 49% of British business owners expect recruiting new talent to become tricky over the next few years.
One interesting point to arise from this research is the number of people finding it difficult to find work – despite employers finding it a challenge to find new talent. This demonstrates that there is a huge mismatch between the candidate skills available and the skills being looked for by employers.
The national unemployment rate is now at 5.1% – this is the lowest it has been since May 2008. There have been a number of shifts in the employment industry with 68% of employers stating it is now more candidate-led.
One business interviewed, who currently operates in the retail sector, reported that “as the economy continues to get stronger, finding talent becomes a bit more difficult”. Around a third of the businesses surveyed agreed with that view, suggesting that finding the right people to fill roles is going to become more difficult in the remainder of the current decade.
Some 95% businesses believe the new national living wage won’t impact upon their hiring processes when it comes into force in April and 77% of employers said they provide training for current employees so they can upskill.
This highlights that many employers are already adapting to a tougher recruitment outlook.
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