Recruitment key to fixing inflation, says BCC

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03 Aug 2023

The British Chambers of Commerce (BCC) has stated that the government must 'fix the recruitment problem' in order to help ease inflation and minimise the pressure generated by interest rate rises.

According to a survey carried out by the business group, 79% of firms attempting to recruit have faced significant challenges. 60% of businesses polled attempted to recruit in the second quarter of 2023.

The survey also shows that the percentage of firms experiencing recruitment issues has fallen by just three points from a high of 82% recorded in the fourth quarter of 2022. This percentage has stayed above 75% for the last two years, the BCC stated.

It said the lack of people in jobs 'holds back growth and reduces opportunities for investment, including in training'.

Jane Gratton, Head of People Policy at the BCC, said: 'The tight labour market continues to ramp up wage costs, fueling inflation and creating huge difficulties for businesses. With the Bank of England expected to increase interest rates again, it is vital that government boosts efforts to increase the supply of labour to help break the cycle.

'Firms are being squeezed on all sides. With 36.8 million jobs in the economy, there are more employment opportunities than ever before. But we also have low unemployment, and over a million jobs are currently left unfilled. Firms cannot fulfil order books and are turning down new work.'??