Unfilled vacancies cost UK economy £18bn a year
8 December 2014
Unfilled vacancies are costing the UK economy more than £18bn a year, according to a study by the Centre for Economics and Business Research (Cebr) on behalf of job board Indeed.com.
Mon, 8 Dec 2014Unfilled vacancies are costing the UK economy more than £18bn a year, according to a study by the Centre for Economics and Business Research (Cebr) on behalf of job board Indeed.com.
Although this is good news for jobseekers, with the number of unemployed people for every job opening halving from a recent high of 5.6 in Q4 2011, to just 2.8 in Q3 2014, the outlook is somewhat different for businesses.
Due to robust growth in demand, firms in industries such as construction and professional services are finding it difficult to recruit suitably qualified workers, suggesting that the time taken to fill positions with the right people will continue to rise.
This inability to recruit the right people poses two-fold problems for the UK economy. Lack of ability to effectively resource a business slows both production and profits, while the inability to earn an income and spend within the wider economy reduces the individual’s contributions to economic growth.
According to the report, almost half of UK job listings are still active after a month, and 27% are still unfilled after three months.
In a typical month, research reveals vacancies that businesses have been trying to fill for at least one month represent over £1.5bn in potential economic output, equivalent to around 1.3% of monthly GDP across the economy, and more than £18bn annually.
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Although this is good news for jobseekers, with the number of unemployed people for every job opening halving from a recent high of 5.6 in Q4 2011, to just 2.8 in Q3 2014, the outlook is somewhat different for businesses.
Due to robust growth in demand, firms in industries such as construction and professional services are finding it difficult to recruit suitably qualified workers, suggesting that the time taken to fill positions with the right people will continue to rise.
This inability to recruit the right people poses two-fold problems for the UK economy. Lack of ability to effectively resource a business slows both production and profits, while the inability to earn an income and spend within the wider economy reduces the individual’s contributions to economic growth.
According to the report, almost half of UK job listings are still active after a month, and 27% are still unfilled after three months.
In a typical month, research reveals vacancies that businesses have been trying to fill for at least one month represent over £1.5bn in potential economic output, equivalent to around 1.3% of monthly GDP across the economy, and more than £18bn annually.
• Want to comment on this story? The Comment box is at the bottom of the page. Sorry for the glitch but just scroll right down and share your opinions!
