IoD warns staff shortages 'could undermine recovery'

The Institute of Directors (IoD) has warned that staff shortages could impact the UK's economic recovery from the coronavirus (COVID-19) pandemic.

16 Aug 2021

The Institute of Directors (IoD) has warned that staff shortages could impact the UK's economic recovery from the coronavirus (COVID-19) pandemic.

A survey of over 700 directors carried out by the IoD found that 44% of firms are currently experiencing staff shortages. 65% of businesses attribute the shortages to the UK's long-term skills gap, whilst 21% attribute the shortages to staff having to isolate.

Joe Fitzsimons, Senior Policy Advisor at the IoD, commented: 'Employers are keen to re-build following an incredibly turbulent 18 months for business. But the issue of labour shortages is proving disruptive across a huge range of sectors and at all levels. Ensuring that workers are available with the right skillset to perform effectively is a crucial pre-requisite for recovery.

'The long-term skills gap combined with both a reduced talent pool since leaving the EU and the immediate impact of the 'pingdemic' are the primary pressure points. The resultant rising wage bill is the next bitter pill to swallow. It is understandable that directors are very concerned.' 

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