UK employers are continuing to struggle to fill vacancies, despite a broader slowdown in hiring activity, highlighting persistent structural issues within the labour market.
According to the British Chambers of Commerce (BCC), around 71% of businesses report difficulties recruiting staff in its latest survey. The figure underscores a long-running challenge for employers, even as economic conditions begin to soften.
At first glance, the data presents a contradiction. Hiring is slowing, vacancies are falling, and yet employers still cannot find the workers they need. In reality, this reflects a mismatch between the types of roles available and the skills of the workforce.
Businesses across multiple sectors—including engineering, healthcare, construction, and digital industries—report a shortage of suitably qualified candidates. In many cases, roles require specialist skills or experience that are in short supply.
At the same time, competition for experienced workers remains high, particularly in sectors where demand has remained strong. This is pushing up expectations for candidates, even as overall hiring volumes decline.
For jobseekers, this creates a more complex landscape. While there may be fewer roles available overall, those that do exist are often harder to access, requiring higher levels of experience or specific qualifications.
Recruitment specialists say this dynamic is contributing to what is increasingly described as “experience inflation,” where entry-level roles begin to demand several years of experience, limiting access for new entrants to the workforce.
This has significant implications for social mobility and workforce diversity. Groups that already face barriers to employment—including young people, career changers, and individuals from underrepresented backgrounds—are more likely to be affected when entry routes become more restricted.
The issue is not simply one of skills, but also of access. Training pathways, regional disparities, and unequal access to professional networks all contribute to a labour market where opportunities are not evenly distributed.
For employers, the challenge is becoming more strategic. Rather than relying solely on traditional recruitment methods, there is growing recognition of the need to invest in skills development, apprenticeships, and internal progression pathways.
Some organisations are also beginning to rethink their hiring criteria, focusing more on potential and transferable skills rather than strictly defined experience requirements.
Business groups, including the BCC, have called for coordinated action to address these issues, including greater investment in training, improved careers guidance, and closer collaboration between employers and education providers.
Without intervention, there is a risk that recruitment challenges will persist even as the labour market slows, creating a situation where both employers and jobseekers struggle to connect.
In the longer term, addressing these structural mismatches will be key to building a more resilient and inclusive labour market.
Kim Cockayne