According to the British Chambers of Commerce (BCC) recruitment problems are at a “record high” as three out of four companies are struggling to fill job vacancies.
They said that 61 percent of firms were actively recruiting staff in the second quarter, similar to the 60 percent seen in the first quarter.
However 76 percent had experienced trouble in finding staff.
Out of 5700 businesses surveyed the sector reporting the most difficulties was construction, followed by production, manufacturing and hospitality.
BCC head of policy Jane Gratton said: “Businesses remain under huge pressure to fill jobs, but record levels of recruitment difficulty are showing no signs of improvement.
“Solutions are urgently needed so that firms can keep their doors open throughout these tough times.
“We have written to the Government outlining a three-point plan on how they can work with businesses to solve this.
“Firms must be encouraged to find new ways of unlocking pools of talent – by investing more in training their workforce, adopting more flexible working practices, and expanding use of apprenticeships.”
The survey also discovered that fewer than one in three firms had increased investment over the past few months.
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“Employers cannot wait for a new prime minister before this is sorted. Shortages are impacting not only on their ability to service order books but also on the morale and wellbeing of their people.
“The economic challenge we are facing is huge and unless we start to fill the hole caused by 1.3 million vacancies, we cannot get back to growth.”
This week the director general of the Confederation of British Industry Tony Danker wrote an open letter to the Tory party asking them to prioritise economic growth.