Relentless tight labour market hindering business growth

Access to people is one of the biggest issues facing our business communities. Firms of all sizes and sectors are grappling with the skills shortages, falling productivity and the changing nature of the workplace. 

Jane Gratton, Head of People Policy at the British Chambers of Commerce, commented on the latest ONS figures, saying: “The figures will come as no surprise to businesses up and down the country who are desperately trying to fill record numbers of vacant roles. 

“With over 1.16 million job vacancies, businesses are still experiencing a relentlessly tight labour market. If firms can’t hire the staff to fulfil their order books, any room for growth is extremely limited. Government is heading in the right direction with its plans to help bring economically inactive workers back into the labour force, especially older workers who left in their droves when lockdown ended. But we need to see more action. There must be carefully tailored careers advice, job seeker support and rapid re-training opportunities to help employers harness the skills and experience of older workers. Businesses also need to play their part, by engaging with local skills and employment opportunities, adopting flexible working policies where possible and helping older workers develop their skills for the changing workforce. 

“Finally, Government must hear our calls to urgently reform the Shortage Occupation List to help businesses fill urgent job vacancies when they cannot recruit locally. The List should include job roles below RQF Level 3 for sectors where there is clear evidence of a national shortage. The UK’s tight labour market is one of the top challenges preventing our businesses and economy from growing. It’s no use simply talking about growth if we are not prepared to act on it. With an anaemic economy and low productivity, Government must take immediate steps to ease the considerable labour pressures on businesses – we can’t afford to wait any longer.”

Local Skills Improvement Plans

Attracting and retaining people with the rights skills is crucial for businesses. The Accredited Chambers of Commerce in the UK are working to connect employers to skills and people to jobs. We are leading 32 of the 38 Local Skills Improvement Plans (LSIPs) across the country. Sussex Chamber has been convening businesses, training providers, funders and a wide range of local stakeholders to plan for the skills needed to boost local economies and improve opportunities for individuals.

Businesses have a key role in helping young people understand the local career opportunities available and in offering the work experience that can bridge the gap between the worlds of education and the workplace. Sussex Chamber can help you connect to schools, colleges and universities in Sussex.

Discover new talent

Being involved with schools, colleges and universities is an opportunity to identify potential employees who are a good fit with your organisation. In the medium term this can reduce expensive and time-consuming recruitment activity and support your planning for the future.

Fresh perspectives

Students on an industry placement will quickly acquire new knowledge and skills and make a real contribution to your team as they do so. They can also bring awareness of emerging trends and new ideas to your business.

Develop your current team

Getting your employees involved in education engagement activities can be rewarding and inspiring. It contributes to your team’s professional development, helping to build communication, leadership and management skills and can strengthen their loyalty to your company. Linking up with your local college or university can also open the door for technical training to upskill your existing staff.

Build new partnerships

Connecting with schools, colleges and universities offers a strong value exchange. The institutions gain broader insight into your industry needs, and you can get involved in shaping the skills being taught in your local area, whilst benefitting from building your existing knowledge and expertise, for example, in developments in technology. This collaboration also demonstrates the wider contribution your business makes to the community.

Connect locally

Working with your local education institutions can contribute to your organisation’s social responsibility and reputation. Your real-world input brings the curriculum to life and gives learning a concrete focus. It’s also a great opportunity to inspire, inform and help young people – which is good

Contact Sussex Chamber at skills@sussexchamberofcommerce.co.uk to help shape the local skills improvement plans.