The Q2 HR Bulletin from Make UK found 83 per cent of manufacturers attempted to recruit new staff in Q2 – and more manufacturers (67 per cent) were able to fill most of their vacancies compared to any point since end of 2022. However, the biggest barriers to recruitment remains lack of candidates with the right skills (65.6 per cent) followed by lack of applicants with right qualifications (31.9 per cent).
The employment picture on the whole is therefore looking a little healthier, with manufacturers across the board reporting an easing of recruitment pressures with more vacancies being filled than at any point in the last two years.
However, Britain’s manufacturers are still facing the long-term skills challenges which have held businesses back from growing to their full potential for the last few years.
The brighter recruitment landscape is thought to be as a result of a combination of reasons – with companies citing better staff retention and older workers coming back into the workforce as a contributary factor. Sickness absence has come down and is combining with lower pressure on pay demands, although 33 per cent of businesses say they had increased pay to the new national living wage level.
More companies than ever have reported that they have fully embraced flexible working for their staff which is helping significantly with retention.
“While manufacturers report an easing of immediate labour shortages, long-term skills challenges remain,” said Jamie Cater, Make UK’s Employment policy lead. “The Government has made welcome improvements to the apprenticeship system in recent months – not least additional funding to support high-value manufacturing courses and reduce barriers faced by SMEs.
“However, there remains further to go, and a full review of the apprenticeship system – with the goal of restoring the number of manufacturing apprentices to its pre-levy high and further reducing the number of vacancies in the sector – must be a priority.”
