The research, published as the first elements of the Employment Rights Act come into effect, shows just 29% of businesses reporting no recruitment problems.
The BCC’s Quarterly Recruitment Outlook indicates hiring problems are most significant in transport and construction, with 82% and 81% of responding firms experiencing issues. Retailers were the least likely to have experienced problems, with 60% reporting issues.
The research was carried out between 9 February and 9 March, before the spiralling impact of the Middle East conflict was fully apparent. More than 4,560 businesses across the UK (91% of whom are SMEs) took part.
Labour costs were still the biggest cost pressure for businesses, cited by 73% of responding firms (the same level as Q4). This was highest in the hospitality sector, where 85% of firms say labour is a cost pressure. While in transport and logistics the figure is 84% and in manufacturing it is 78%.
According to the data, over a quarter (27%) of firms expect to increase the size of their workforce over the next 12 months (23% in Q4 2025). The majority (63%) of businesses say they expect no change in their staffing levels, while 10% expect to cut the size of their workforce.
As SMEs continue to face cost challenges, investment in staff training remains low. Most businesses (58%) reported...
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