The BCC’s latest Quarterly Recruitment Outlook (QRO) showed that 55% of firms attempted to recruit in the last three months, broadly similar to the 54% in the first quarter.
Of those firms trying to hire staff, 73% said they experienced difficulties, a slightly improved picture from the previous quarter.
Labour costs remain the biggest cost pressure for businesses, cited by 73% of respondents, the same as in the first quarter of the year.
Jane Gratton, Deputy Director of Public Policy, at the BCC, said:
"While it is still early days, firms are beginning to sound the alarm on the impact of NICs and other employment costs. There could a big shock coming further down the line.
Increased labour costs and persistent skills shortages are making recruitment a significant challenge for SMEs.
At the same time, growth and productivity is being stymied by persistent skills shortages, particularly in sectors like transport, logistics and construction.
We need urgent action by policymakers to tackle the long running skills crisis. That means a more flexible and responsive training system, better support for people facing barriers to work, and a firm commitment to no further tax hikes on business."
READ MORE
21/07/2025
View all >
17/11/2025
Budget choices will determine UK’s growth
Chancellor Rachel Reeves must use the Autumn Budget to make the bold decisions necessary to get the economy firing, says the Confederation of British Industry (CBI).
Self-employed overcounted for decades
Official statistics have overstated the size of the UK’s self-employed population for two decades, according to the Institute for Fiscal Studies (IFS).
AI will shrink headcount
One in six employers expect AI to shrink their workforce over the next year, with junior roles most at risk, according to the CIPD.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.