If you feel like hiring’s been tougher than ever, you’re not imagining it. The latest British Chambers of Commerce Quarterly Recruitment Outlook confirms what many of us already know – the UK’s recruitment landscape is stuck in a loop.
Just over half of firms (54%) tried to hire in the last quarter, but three-quarters (75%) of them hit a wall trying to find the right people. Construction firms are feeling it most, with a staggering 85% reporting recruitment difficulties.
It’s a cocktail of high employment costs, low confidence and cautious investment. Less than a quarter of businesses (22%) increased their workforce in Q3 and only one in four plan to grow headcount in the next three months.
And the biggest pinch point? Labour costs. They’re the number one pressure for 72% of firms – especially in hospitality, where that figure jumps to 80%.
Jane Gratton of the BCC summed it up neatly: “Employers are battling against sky-high employment costs and widespread skills shortages… unless more is done to boost access to skills and contain costs, economic growth will remain stunted.”
At KCA People, we see this reality every day. Employers are eager to grow but often find themselves caught between budget constraints and a shrinking talent pool. The answer isn’t just to “work harder” on recruitment – it’s to work smarter.
That means:
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Investing in upskilling – even small steps can close critical skills gaps.
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Tapping into underused talent pools – think returners, young people and those with untapped potential.
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Creating environments that retain, not just attract – flexible, inclusive, and future-focused.
The upcoming budget is a golden opportunity for the government to act – tax breaks for employee health support, incentives for training and schemes that bring sidelined talent back into the workforce would be a strong start.
Because while the stats tell one story, the real people behind them – employers trying to keep going and candidates searching for opportunity – deserve a better ending.
At KCA People, we help businesses find creative, people-focused ways to build stronger teams – even in challenging markets. Whether you need to rethink your hiring strategy, strengthen retention or simply get your people plans back on track, we’re here to help you make it happen.
Let’s chat about your workforce goals – get in touch here
Email – kirsty@kcapeople.co.uk
Call – 01244 732 070