Pressures on employers holding them back from hiring

With the combination of economic uncertainty and high employment costs, many employers are holding back on hiring.

Ahead of the upcoming Autumn Budget next month, the results of a new report reveal a number of suggestions from UK employers to help solve some of their hiring issues.

The recent survey, conducted by Whitestone Insight for the Recruitment and Employment Confederation (REC), found that employers do show support for certain government plans, such as the changes to the Apprenticeship Levy to enable funding for short, accredited courses to boost skills.

However, employers also indicate that they need more support to provide the join-up needed to see better employment options for young people.

Main barriers to increasing hiring

When asked what the main barriers are when it comes to increasing hiring across the workforce, the results show:

• Uncertainty in the economy and geopolitics (cited by 37%)
• High employment costs, e.g. Employers’ NI contributions, minimum wage rises (33%)
• Lack of candidates with the right skills/qualifications (26%)
• We don’t have enough financial headroom to grow our workforce (24%)
• Concerns about the impact of the Employment Rights Bill, e.g. new rules for workers on zero-hour contracts, new “day 1” rights (23%)

More government support needed

Employers of all sizes across the UK were asked what they consider the most effective way in which the government could support them to hire young people who are long-term unemployed and in education or training.

They gave the following suggestions:

• Financial incentives like wage subsidies or tax credits (cited by 36%)
• Short, funded work trials with the option for the employer to keep on candidates (29%)
• Sustained funding for programmes designed to help young people (26%)
• Pre-employment training focusing on workplace expectations, essential skills, digital skills, literacy and/or numeracy (26%)
• Government support for young people with non-work-related barriers, e.g. transport, childcare or mental health (22%)
• Enabling short, accredited courses that boost technical and vocational skills to be funded by the Apprenticeship Levy (22%)
• Government-funded mentoring and guidance available for 16–24-year-olds starting their careers (20%)
• Local bodies (for example, regional Mayors) working to codesign interventions supporting young people into work with local employers and organisations (16%)

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