According to our research, most skills and labour shortages currently facing the UK pre-date the pandemic, although certain sectors – most notably hospitality, health and social care and manufacturing – are facing particularly acute challenges with hard-to-fill vacancies.

The findings, based on a survey of more than 2,000 employers and focus groups with organisations in low-paying sectors and young jobseekers, point to a need for both the UK Government and employers to look at specific short-term interventions and longer-term investments to tackle the issues.

The CIPD calls on the UK Government to:

  • Establish a temporary job mobility scheme for young EU nationals to act as a ‘safety valve’ to ease immediate, acute labour shortages.
  • Reform the Apprenticeship Levy to create a broader, more flexible training levy to boost employer investment in skills. 
  • Provide £60m to fund a business improvement consultancy service via the Growth Hub network to help more firms invest in new technology and improve their people management and workforce development capability.

For employers, the CIPD recommends:

  • Maximising wages where possible and supporting employee financial wellbeing, to overcome low pay as a deterrent for applicants. 
  • Considering employment under permanent contracts rather than temporary, as this is preferred by many jobseekers. 
  • Using a wider range of recruitment channels and methods, and in particular, building links with local groups, schools and colleges.
  • Exploring different flexible working arrangements, and providing training for line managers to support your people.
  • Ensuring there are opportunities for development and promotion, as this is an important attractor according to jobseekers.

Download the report below

Addressing skills and labour shortages post-Brexit

Download the report
PDF document 1.3 MB

More on this topic

Thought leadership
Takeaways from the UK Autumn Statement 2023

Iain Wright, Chair of CIPD Policy Forum, dissects what the UK Autumn Statement really means for the world of work, skills and the economy

Thought leadership
Public sector morale is in decline

Mark Beatson looks at the latest data on staff morale in the public sector and finds that it’s declining, driven by excessive workloads and staff shortages

Skills development in the UK workplace

Understand what we mean by skills in the workplace, UK skill levels and the government’s skills policy.

More reports

Menstruation and support at work

This report explores employees’ experiences of menstruation and menstrual health at work and details how employers can develop a supportive culture

Labour Market Outlook

Read our latest Labour Market Outlook report for analysis on employers’ recruitment, redundancy and pay intentions this autumn

Devolution and evolution in UK skills policy

A report seeking common ground in skills policy across the UK’s four nations

People Profession 2023: International report

Insight into how global issues are impacting people professionals in the UK, Ireland, Asia-Pacific, MENA and Canada

See all reports