--- description: In this first article in a series, we discuss how surveyed recruiters in the UK feel about the labour shortage in the job market and its impact on companies. image: https://gdm-localsites-assets-gfprod.imgix.net/images/getapp/og_logo-94fd2a03a6c7a0e54fc0c9e21a1c0ce9.png title: Is there a labour shortage in the UK job market? --- # Is there a labour shortage in the UK job market? Canonical: https://www.getapp.co.uk/blog/3104/labour-shortage-in-uk Published on 29/09/2022 | Written by Sukanya Awasthi. ![Is there a labour shortage in the UK job market?](https://images.ctfassets.net/63bmaubptoky/8GzSTgKTdc4et5H8Lmw4TXuDcdUGmdQnBGO0aAjSxj4/c5a33c575f57b992f973034c62e408ff/Labour-Shortage-UK-UK-GA-Header.jpg) > Is the UK job market witnessing a labour shortage? How severely are companies being impacted by it? Is recruitment technology acting as an aid for companies? To find out, GetApp surveyed recruiters to gauge their sentiments around these questions. Read along to learn more about our findings in this first part of a two-part series. ----- ## Article Content Is the UK job market witnessing a labour shortage? How severely are companies being impacted by it? Is recruitment technology acting as an aid for companies? To find out, GetApp surveyed recruiters to gauge their sentiments around these questions. Read along to learn more about our findings in this first part of a two-part series.In this articleMajority believes that there is a labour shortageHow are companies being impacted due to labour shortages?Are new technology changing the way recruitment is done?LinkedIn is the most preferred platform for recruitment55% say their companies include salaries in job descriptionsStudy highlightsAs the world is trying to recover from the effects of the pandemic, the UK job market may also be trying to return to pre-pandemic levels. The number of job vacancies rose to a record number in the UK between March and May 2022 as per a report by the Office for National Statistics.Keeping this in mind, we surveyed HR professionals from different parts of the UK to gather their sentiments around the changing jobs landscape and how companies are trying to adapt to the dynamicity with the help of technology like recruitment software. To do that, we collected responses from 286 respondents above the age of 18 in the UK between 1st to 7th September 2022 —for the full methodology, scroll to the bottom of this article.Majority believes that there is a labour shortageBritain is currently in the grip of an ‘employment crisis’ and there are 1.3 million job vacancies, according to an article by The Week. The article also states that part of the reason for this could be Brexit and the ‘economically inactive’ workforce which is neither working nor looking for work. To understand the current job market in depth, we tried to ask recruiters if they are facing the same issues in their companies.Of those who believe that there is a labour shortage, 55% feel that it started with the onset of COVID-19. On the other hand, 20% of HR professionals surveyed feel that this labour shortage started before the onset of COVID-19, while 19% feel that it started in 2021.45% believe HR departments witnessed the highest shortageAre the effects of labour shortage the same across all departments in a company? Out of the HR professionals who believe that the job market is experiencing a labour shortage, 45% believe that HR departments are witnessing labour shortage to the most extent, followed by departments like IT and sales (16% each), marketing (9%), and finance (7%), among others.How are recruiters addressing the labour shortage?Those recruiters who consider that the job market is experiencing a labour shortage were asked what actions their companies are taking to address it. These are their responses:How are companies being impacted due to labour shortages?‘ Many of Britain’s employers, faced with a labor shortage, are raising wages to attract workers.’ according to an article by The New York Times. This is possibly one of the ways companies are trying to cope with the shortage of a skilled workforce.In order to understand how companies are being impacted by this shortage, we asked those respondents who feel that there is a labour shortage the following question: “What are the implications for your company for missing out on recruiting top talent due to labour shortages?”, and the following responses were recorded.Are companies losing revenue due to labour shortage?Attrition and unfilled vacancies can possibly cause companies to lose money. When we tried to understand how much revenue companies were losing compared to projections due to the labour shortage, 42% of the respondents said that they were losing between 11%-15%, followed by 24% saying that the loss percentage is between 16%-20%. Around 20% of the recruiters voted for 5%-10% as their loss percentage range, among other answers. These are all the respondents who believe that the job market is witnessing a labour shortage.Are candidates declining a job offer after receiving one?The UK job market is getting competitive, according to an article by the CIPD. In such a scenario, candidates may often land up with multiple job offers and decline the ones which suit them the least.When we tried to estimate the percentage of candidates who have declined a job offer after receiving one in the last year, 37% of the surveyed recruiters told us that 21-30% of the candidates did not take up their offer after receiving it. 29% of recruiters said that the number is between 10-20%, while another 19% said that 31-40% of the candidates rejected their job offer, followed by 10% of the recruiters saying that the rejection rate was less than 10% in their company.Are new technology changing the way recruitment is done?Human resources departments may be able to benefit greatly from the use of technology to automate mundane manual processes. In order to understand the adoption of  technology by companies, we asked recruiters if they think new technology —e.g. artificial intelligence (AI)— is changing the way recruitment is done. 50% think it is changing some part of the recruitment process, while 44% of recruiters think that these technology are changing all the parts of the recruitment process.How are technology like AI helping companies with recruitment?Technology could fundamentally change the recruiting industry, transforming everything from job boards to online application processes. The recruiting process may benefit from the use of technology like automation, applicant tracking systems (ATS), AI-powered software, and analytics in managing the flood of resumes recruiters potentially get with each new job posting.Now that a lot of the workforce is possibly working remotely, these technology can further help recruiters shortlist candidates more efficiently in a virtual setup rather than with in-person screenings.Majority of companies are using automated recruitment toolsWhen asked if their company has implemented new technology for recruitment —of those respondents who felt that new technology are changing the recruitment processes— the majority said that they are already using automated recruitment tools.At which stages are companies implementing such technology?Of those respondents who stated that their company has implemented new technology for recruitment, we asked them which stages of the process their company has implemented such new technology in. 78% of them said they implement it in the middle of the process —for instance in case of application of knowledge tests, personality tests etc. This is followed by 74% of the recruiters stating they use these technology at the beginning of the process —e.g. to identify suitable candidates— while 41% say they use them in the last part of the process —e.g. for giving feedback to job applicants.Using new recruitment technology very helpful for majorityIn order to understand the usefulness of these technology, we asked recruiters who believe that there is labour shortage the following question: “Overall how helpful do you find using new technologies in the recruitment process” and as many as 58% of the recruiters said they find it very helpful, followed by 40% finding it somewhat helpful.LinkedIn is the most preferred platform for recruitmentWhich hiring platform are recruiters opting for the most? When we asked recruiters which platform they are primarily using for recruitment, 30% responded with LinkedIn. This is followed by social media (20%), their own website (14%), and Indeed (11%), among other options.How long does the recruitment process typically take?In order to understand the general duration of the complete interview process in companies, we asked recruiters how long the recruitment process typically takes from the first interview until an offer is made. 32% of respondents said it takes between 2 weeks to less than 3 weeks. 25% said that it takes 1 week to less than 2 weeks, while another 25% said that it takes between 3 weeks to less than 4 weeks, among other possible answers.55% say their companies include salaries in job descriptionsThe UK government started a pilot programme in March 2022 to assist in increasing employment possibilities and reduce wage inequalities for women. Employers taking part in the effort will disclose salaries and refrain from requesting applicants’ prior salaries throughout the hiring process. When we asked the recruiters if their company includes salaries in job descriptions, the following responses were recorded:Why are companies including salaries in job descriptions?Of those recruiters who said that they always or sometimes include salaries in job descriptions, we further asked them the intent behind doing so. Most of the survey-takers said they do it to ensure candidates are well informed prior to applying for a job (74%).Additionally, 55% said they include salaries in the job description so that other companies can get to know the salary range offered by their company, followed by 53% saying they do it to attract candidates. 49% of recruiters stated they do it to ensure the recruitment process is fair for candidates, and 21% choose to do it to try to ensure that the salary offered is not arbitrarily determined.Why are companies not including salaries in job descriptions?There could be many reasons why companies are hesitant to put salary information in job descriptions. Of those respondents who stated they they either do not plan to include salary information or would like to start doing it, we asked why they do not include salaries in job descriptions, and half of them said that they are doing so to avoid letting other employees know the new employees’ salary. Other responses include to ‘ensure an unbiased viewpoint for the candidate’ (40%) and ‘be able to adjust the salary based on candidates expectations’ (40%).Study highlights92% of the recruiters believe that there is a labour shortage in the UK job market. Of those who believe that there is a labour shortage, 55% feel that it started with the onset of COVID-19.49% of the recruiters feel that the biggest implication for their company for missing out on recruiting top talent due to labour shortages is overload of work for some employees. 42% of the recruiters said that their company was losing between 11%-15% of revenue compared to projections due to the labour shortage. 37% of the surveyed recruiters said that 21-30% of the candidates did not take up their offer after receiving it. When asked if new technology —for example AI— is changing the way recruitment is done, 50% think it is changing some part of the recruitment process while 44% of the recruiters think that these technology are changing all the parts of the recruitment process.Those who believe that new recruiting technologies are changing the way recruitment is done were asked if recruiters are implementing new technology for recruitment, and 75% said that they are already using such tools in their company. 78% of those that said they are using such tools stated that they implement it in the middle of the process. In addition, 58% of the recruiters said they find these technology very helpful.When we asked recruiters which platform they are primarily using for recruitment, 30% responded with LinkedIn, followed by social media (20%).When we asked recruiter respondents if their company includes salaries in job descriptions, 55% said that they always do while 41% said that they sometimes do.Looking for recruitment software? Check out our catalogue. ## Disclaimer > MethodologyGetApps’s recruitment process survey was launched between 1st September 2022 and 7th September 2022. It was undertaken by 286 participants from different parts of the UK. For the purpose of this article, we have focused on the HR professionals for the first part of a two-part survey. The criteria for selecting the participants are as follows:1) Resident of the United Kingdom2) Above 18 years of age3) Are employed full-time or part-time4) Work in a company of 2-250 employees5) Work in the HR department6) Belong to one of the following designations within the organisation: Chief human resources officer (CHRO) or equivalent, vice president of HR, HR director, HR manager, HR generalist, HR associate, and HR specialist7) Usually perform tasks related to recruiting people for their company ## About the author ### Sukanya Awasthi Sukanya Awasthi is a content analyst for Capterra, covering emerging technology trends with a focus on retail, construction and ERP. With an educational background in Computer Science, she brings 8 years of hands-on experience to her writing, translating intricate technical concepts into accessible and informative insights. Sukanya’s research and analysis is informed by nearly 200,000 authentic user reviews on Capterra and over 40,000 interactions between Capterra software advisors and software buyers. Sukanya also regularly analyzes market sentiment by conducting surveys of business leaders in the construction space, as well as retail leaders and consumers, so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services. Her work has been featured in Financial Express, Economic Times, and Bloomberg Quint, among other publications. Outside of work, she likes to spend time with her loved ones and her two dogs. ## Related Categories - [Accounting Software](https://www.getapp.co.uk/directory/236/accounting/software) - [Collaboration Software](https://www.getapp.co.uk/directory/335/web-collaboration/software) - [CRM Software](https://www.getapp.co.uk/directory/230/crm/software) - [Employee Engagement Software](https://www.getapp.co.uk/directory/715/employee-engagement/software) - [Project Management Software](https://www.getapp.co.uk/directory/332/project-management/software) ## Related Articles - [Application of AR/VR in healthcare in the UK](https://www.getapp.co.uk/blog/2842/applications-of-ar-and-vr-in-healthcare-in-the-uk) - [The rise of MarTech among SMEs](https://www.getapp.co.uk/blog/2557/rise-of-martech-among-smes) - [What harms digital trust reputations for UK companies?](https://www.getapp.co.uk/blog/3619/what-harms-digital-trust-most) - [Employee monitoring: 95% of UK workers say bosses’ trust levels are high](https://www.getapp.co.uk/blog/1964/employer-monitoring-95-uk-workers-say-bosses-trust-levels-high) - [COVID-19 has redefined the workplace for the majority of employees](https://www.getapp.co.uk/blog/1844/covid-19-has-redefined-the-workplace-for-the-majority-of-employees) ## Links - [View on GetApp](https://www.getapp.co.uk/blog/3104/labour-shortage-in-uk) - [Blog](https://www.getapp.co.uk/blog) - [Home](https://www.getapp.co.uk/) ----- ## Structured Data