Job vacancies in the UK have exceeded one million for the first time on record, according to the Office for National Statistics (ONS). The number of vacancies in the three months to August rose above the million mark, reflecting the ongoing economic recovery.
Employee numbers have returned to pre-pandemic levels, with August payrolls showing an increase of 241,000 to 29.1 million. However, the ONS cautioned that the recovery is uneven, with London and sectors such as hospitality and the arts still lagging.
Despite the rebound in staffing levels, business groups warn that labour shortages could dampen growth. Suren Thiru, head of economics at the British Chambers of Commerce, described an 'acute hiring crisis', noting that Brexit and Covid-19 have driven a decline in labour supply.
The food and accommodation sectors saw the largest increase in job vacancies in August, rising by 57,600. Some food industry companies have struggled to provide normal service due to shortages of fruit pickers and lorry drivers. Dairy giant Arla has cut back on milk deliveries to supermarkets because of driver shortages.
Ali Capper, owner of Stocks Farm and chair of British Apples and Pears, said the sector is at 'crisis point', with the industry running 10-35% short of labour. She expressed deep concern over fruit picking and packing roles ahead of Christmas, and criticised the government for 'presiding over chaos' in food and drink manufacturing.
The ONS also noted that young people have been badly affected by job losses, although the overall unemployment rate fell from 4.7% to 4.6% in the three months to July. Neil Carberry of the Recruitment and Employment Confederation urged the government to improve training opportunities and allow flexibility in the immigration system to address the crisis.
