The UK labour market continues to present challenges for firms across various sectors, according to research from the British Chambers of Commerce (BCC).

The BCC's latest quarterly recruitment outlook, which surveys nearly 5,000 UK businesses of all sizes and industries, indicates that firms are facing persistent recruitment difficulties.

While attempts to recruit new staff remained steady, with 59% of firms actively seeking employees, the figures show that 76% of UK firms struggled with recruitment in Q4 2023, a slight increase from 73% in Q3 2023 but down from the high of 82% in Q4 2022.

The hospitality sector was the most affected, with 82% of firms facing hiring challenges, followed by transport and logistics at 81%, and construction at 79%. There was a notable difficulty in finding semi/unskilled workers and skilled manual/technical staff in the hospitality sector.

Despite these challenges, investment in staff training has remained relatively high, with just over a quarter of firms (26%) enhancing their training budgets. Labour costs remain a major concern for 68% of businesses, and 55% are worried about rising energy costs.

Jane Gratton, deputy director of public policy at the BCC, said:

"Our data shows the recruitment crisis continues to loom large for many businesses across the UK.

"Too many firms are still struggling to hire and retain staff. The situation in the hospitality sector is especially concerning. At the start of an election year, and with a budget just weeks away, it's vital that politicians start outlining how we can plug these gaps and support more people into work.

"Businesses urgently need to see a long-term strategy on skills and training from politicians. We need to properly resolve the ongoing recruitment crisis and ultimately boost economic growth."

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