'It's worsening' | 2 in 3 UK firms facing 'critical' skills shortages

UK firms are experiencing the knock-on effect of ongoing skills shortages and recruitment challenges, as more than three quarters (78%) report seeing reduced output, profitability or growth, according to a new report.

According to The Open University’s Business Barometer 2022 report, published in partnership with the British Chambers of Commerce, which provides a temperature check on the UK skills landscape, almost three-quarters (72%) of organisations say the impact increases workload on other staff.

This statistic has crept up dramatically year on year, when only 56% of respondents from 2021’s report claimed their staff were experiencing additional pressure.

To address the problem, more than half (52%) of large organisations will increase investment in staff training over the next year, compared to 47% of SMEs. The knock-on effect of these shortages is also impacting company growth as 28% of businesses say they have had to turn down work or are not able to bid for work due to their staff shortage.