The British Chambers of Commerce (BCC) is calling for better skills planning to help tackle recruitment difficulties across all sectors.
The number of job vacancies has fallen while growth in the number of employees on payrolls has slowed, according to the latest data from the Office for National Statistics (ONS).
The unemployment rate remained at 4.4% in the three months to May, while wages growth fell to its slowest pace for nearly two years as the job market continues to cool.
Between April and June this year, the number of job vacancies fell by 30,000 on the quarter to 889,000, led by the retail and hospitality sectors.
Jane Gratton, Deputy Director of Public Policy of the BCC, said: “The labour market is continuing to cool but high wage growth is still bearing down heavily on businesses. Our research shows labour costs are the main external pressure on firms forcing them to put up prices and hold back on investment.
“Our latest survey on recruitment, published earlier this week, shows firms across all industries are facing increased difficulties hiring staff. Better skills planning is crucial to tackling these problems, both for individual firms and the wider economy.
“It was encouraging to see a focus on skills in yesterday’s King’s Speech. Plans to create a national skills plan for England, to underpin an industrial strategy, are welcome. Meanwhile, reforming the apprenticeship levy is long overdue.
“Policymakers across the UK need to prioritise helping more people back into work and making sure they have the skills they need to thrive.”
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