Fact Service June 2022

Issue 26

Staff shortages stifling growth

UK companies are feeling the effects on growth of staff and skills shortages, the Open University (OU) and British Chambers of Commerce have found.

According to the OU’s Business Barometer 2022, more than three quarters of organisations (78%) are seeing reduced output, profitability or growth as a result of the skills shortages, while 72% say the impact increases workload on other staff. Last year only 56% said their staff were experiencing additional pressure.

The effect of these shortages is affecting company growth, with 28% of businesses saying they have had to turn down work or are not able to bid for work due to their staff shortage. More than two-thirds (68%) of SMEs are facing skills shortages, rising to 86% of large organisations.