London Daily

Focus on the big picture.
Friday, Mar 06, 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
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
×