Resilience in the employment market has seen almost half of privately-owned UK businesses face a major hike in wages, with 47% incurring 'significantly' more staff costs (excluding inflation) than a year ago, according to new research by financial adviser Grant Thornton.

Grant Thornton's International Business Report, which surveyed 7,800 owners and senior managers in 34 economies, also found that half of privately-owned UK businesses (51%) were more, or significantly more, focused on attracting and retaining staff than they were a year ago. This was compared to just 2% who were less or significantly less focused on recruitment and retention than 12 months ago.

Alysoun Stewart, head of entrepreneurial advisory at Grant Thornton, said that despite recent job losses in the financial sector, low unemployment figures continued to be reported in the wider economy, suggesting the skill shortages that have been such a challenge for many businesses during the recent period of economic expansion will remain a factor unless the credit crunch precedes a true, and protracted, recession.

"With the reports last month of the highest number of people in employment since comparable records began in 1971, coupled with the international fluidity of employment today, companies are being forced to compete on wages despite the prediction of continuing economic uncertainty during the coming financial year."