Tight labour market is main threat to UK firms, business chiefs warn
A tight labour market is threatening to choke off growth for UK firms this year as bosses struggle to attract and retain staff, a new survey has revealed.
Some 69 per cent of chief executives said the availability of talent and skills was the most pressing threat facing their firm over the next 12-18 months, ahead of geopolitical instability and recessionary fears, according to a survey from leadership advisory firm Russell Reynolds.
The findings come after the number of job vacancies rose to a new record of 1.3m in the period between March and May, an increase of 20,000 from the previous quarter and an jump of 503,900 from the pre-pandemic level in January to March 2020.
The Confederation of British Industry in July warned that labour shortages threatened to stymie growth in the UK and called on the ministers to work with the private sector to soften the impact of staff shortages.
The availability of talent was cited as a bigger threat to business than geopolitical instability, which 50 per cent of chiefs said was their main concern, while uncertain economic growth was the primary threat to their business.
Russell Reynolds boss Constantine Alexandrakis said top executives globally were grappling with a “profound level of geopolitical and economic uncertainty” this year.
“These conditions are not expected to change any time soon, making it pivotal to have leadership in place that can navigate choppy waters effectively and inspire trust and confidence enterprise wide,” he added.