- Less than a quarter of surveyed firms
(23%) expect to increase the size of their workforce in
the next three months, compared with 63% expecting no
change, and 14% a decrease.
- Just over half of surveyed businesses
(52%) attempted to hire staff in the last three months
(compared with 54% in Q3).
- Recruitment difficulties eased slightly in Q4, however 70%
still report problems hiring staff (75% in Q3).
- Hiring remains the most difficult in the
construction sector, with 78% of businesses
reporting recruitment challenges (85% in Q3).
- Faced with rising costs, more than fifth (22%) of firms have
cut staff training, with 57% saying workplace development
investment has stayed the same.
Despite hiring problems easing, fewer firms are
expecting to grow their workforce in early 2026,
according to the latest data from the British Chambers of
Commerce (BCC).
The BCC's Quarterly Recruitment Outlook shows less than a
quarter (23%) of surveyed businesses
are planning to increase the size of their
workforce in the next three months, down slightly from
25% in Q3 survey. Meanwhile 63% expect their staffing levels
to remain the same, 14% are expecting to reduce their
workforce.
The research shows recruitment pressures eased at the end of
last year. Of those businesses who attempted to
recruit in Q4, 70% said they experienced
difficulties, compared with 75% in
the previous quarter.
The research for Q4 was carried out
between 10 November and 8 December, with more than 4,600
businesses across the UK (91% of whom are SMEs)
responding.
The hiring picture is slightly
different across
sectors. The construction sector is
the most vulnerable to recruitment difficulties,
with 78% of businesses reporting problems. 75% of
manufacturing firms said they experienced hiring
difficulties in Q4. Meanwhile, in the retail sector the figure
was 63% of businesses.
Only a fifth (21%) of firms increased
the size of their workforce in Q4, with half of
businesses (62%) saying their staffing levels
remained the same. 17% of businesses
said they'd cut the size of their
workforce.
Labour costs remain the
biggest cost pressure for businesses, cited by 72% of
businesses, the same level as Q3. But again, there are big
sectoral variations, with that pressure highest in hospitality
(82%) and lowest in retail (66%).
Faced with those rising
costs, firms are struggling to invest in staff training.
Most businesses (57%) reported that their investment in
workforce development remained unchanged over the past three
months. Only 21% said they increased training
investment in Q4, 22% made
cuts.
Jane Gratton, Deputy Director
of Public Policy at the British Chambers of
Commerce said:
“As more firms struggle
under the weight of rising cost pressures, we
are beginning to see an adverse impact on the
jobs market.
“Fewer businesses are taking
on new staff, while others are having to let
staff go. It's reflected nationally in
the rise in unemployment, particularly for young
people.
“Unsustainable cost
increases mean firms also have less
budget to invest in training. Our survey shows
that more than a fifth have had to cut their
training budget, at a time when the economy is being held
back by pervasive skills
shortages.
“High taxes and rising
wage bills present huge barriers to investment and
growth. On top of this, the cost burden of the
Employment Rights Act - which the government continues
to underestimate – will create further
problems.
"To stimulate the economy, the
government must now look for every opportunity to minimise
business costs, support employers and provide a compelling
blueprint for economic growth."
