London Daily

Focus on the big picture.
Thursday, Sep 24, 2026

Job vacancies soar as skills shortage bites - KPMG

Job vacancies soar as skills shortage bites - KPMG

Jobs vacancies in the UK are soaring but there are not enough workers to fill them, a report suggests.

The easing of Covid restrictions and reopening of various sectors meant demand for workers rose at its fastest rate in May for more than 23 years, according to a KPMG survey.

But the number of staff available to fill those jobs declined at the quickest rate since 2017.

KPMG called on the government and firms to address skills gaps.

Workers were especially needed in IT and computing, which has been a long-term trend, as well as hospitality, the survey found.

Hospitality venues are struggling to fill thousands of job vacancies with waiting staff and chefs in particular demand as Covid-19 restrictions continue to ease, industry body UK Hospitality said last week.

Many hospitality firms have struggled during the pandemic despite extensive government support, including rates holidays and the furlough scheme, and staff have lost their jobs or seen their hours reduced.

The retail industry saw the least demand for workers.


This monthly survey is based on responses from four hundred recruitment and employment agencies and is yet more evidence of the economic recovery gathering pace.

It says hiring activity has intensified across all job categories, particularly in IT and computing and hotels and catering.


But there's also a shortage of workers. Hospitality and events firms have been struggling to get the staff they need to cope with a post-lockdown surge in demand.

Some are warning of a staffing crisis this summer, partly caused by gaps left by EU workers who have returned home because of Brexit and the pandemic.

The survey's authors say skills and labour shortages, that already existed before the pandemic, are now the most pressing issue in the jobs market.

This means many employers will need to look at the wages and benefits they offer at a time when they're still struggling to financially recover from the last 14 months.

The jobs market "seems to be firing on all cylinders" said KPMG partner Claire Warnes.

"But the deterioration in staff supply intensified this month... This is a worrying trend," she added.

She called for government and firms to "urgently address the skills gap".

Kate Shoesmith, deputy chief executive of the Recruitment & Employment Confederation (REC), said: "With demand spiking, the skills and labour shortages that already existed in the UK have come into sharper focus - and Covid has only made them worse.

"This is the most pressing issue in the jobs market right now, and has the potential to slow down the recovery."

A government spokesperson said: "Our multi-billion pound plan for jobs, including the Kickstart scheme, is supporting employers across the country to create jobs and help jobseekers get the skills and experience needed to develop their careers and fulfil roles for years to come.

"Additionally, we have increased the apprenticeship hiring incentive to £3,000 per new apprentice hire and our lifetime skills guarantee - worth the equivalent of around £3,400 per person - ensures all adults can gain new skills and qualifications."

Newsletter

Related Articles

0:00
0:00
Close
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
×