{"id":93520,"date":"2023-02-17T17:59:26","date_gmt":"2023-02-17T15:59:26","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=93520"},"modified":"2025-10-28T10:37:03","modified_gmt":"2025-10-28T08:37:03","slug":"whats-causing-the-uk-labour-shortages","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/whats-causing-the-uk-labour-shortages\/","title":{"rendered":"What\u2019s Causing the UK Labour Shortages?"},"content":{"rendered":"<p>ONS data (Oct 2025) states <a href=\"https:\/\/www.ons.gov.uk\/employmentandlabourmarket\/peopleinwork\/employmentandemployeetypes\/bulletins\/uklabourmarket\/october2025\" target=\"_blank\" rel=\"noopener\">high levels of economic inactivity<\/a>, referring to the professionals who are not working nor seeking work. Additionally, it appears that employers are posting fewer jobs across many sections, and unemployment is slowly rising. Given the current job market in the UK, c<span style=\"font-weight: 400;\">ompanies are fighting tooth and nail to acquire top talent. Especially companies within the most impacted industries, including: <strong>hospitality, health and social care, accommodation and food services, scientific &amp; technical activities. <\/strong>According to a CBI report, three-quarters of surveyed businesses have felt impacted, and nearly half have been unable to meet expected output as a result. So, what exactly is causing this inactivity, and how can businesses recruit talent in modern times?<\/span><\/p>\n<div class=\"factorial-newsletter-widget\"><div class='fac-newsletter-banner ' id=\"newsletter-section\">\n  <div class='fac-newsletter-banner__content'>\n    <div class=\"fac-newsletter-banner_heading-container\">\n      <h4 class='fac-newsletter-banner__title'>Get insights into the workplace and the resources to help you thrive in it<\/h4>    <\/div>\n    <form class=\"fac-newsletter-banner__form\">\n      <div class=\"fac-newsletter-banner__input-button-container\">\n        <label for=\"newsletter-input\" class=\"fac-newsletter-banner__container\">\n          <div class=\"fac-newsletter-banner__input-wrapper\">\n            <div class=\"fac-newsletter-banner__icon\">\n              <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" class=\"fac-newsletter-banner__icon-svg\">\n                <path d=\"M4 8a2 2 0 0 1 2-2h12a2 2 0 0 1 2 2v8a2 2 0 0 1-2 2H6a2 2 0 0 1-2-2V8Zm12.586 0H7.414l3.879 3.879a1 1 0 0 0 1.414 0L16.586 8ZM6 9.414V16h12V9.414l-3.879 3.879a3 3 0 0 1-4.242 0L6 9.414Z\"><\/path>\n              <\/svg>\n            <\/div>\n            <input id=\"newsletter-input\" class=\"fac-newsletter-banner__input\" type=\"email\" required name=\"api_qualification_entry[contact_email]\" placeholder=\"What\u2019s your email?\">\n            <input\n              type=\"hidden\"\n              name=\"api_qualification_entry[subscribed_to_factorial_newsletter]\"\n              value=\"true\" \/>\n            <input type=\"hidden\" name=\"api_qualification_entry[gdpr_tos]\" value=\"true\" \/>\n            <input type=\"hidden\" name=\"api_qualification_entry[iso_country]\" value=\"gb\" \/>\n            <input type=\"hidden\" name=\"locale\" value=\"en-GB\" \/>\n            <input type=\"hidden\" name=\"api_qualification_entry[marketing_form_campaign]\" value=\"blog_newsletter\" \/>\n          <\/div>\n          <div class=\"fac-newsletter-banner__button-wrapper fac-newsletter-banner__button-wrapper--desktop\">\n            <button type=\"submit\" class=\"fac-newsletter-banner__button\">\n              <span>Subscribe<\/span>\n            <\/button>\n          <\/div>\n        <\/label>\n        <div class=\"fac-newsletter-banner__button-wrapper fac-newsletter-banner__button-wrapper--mobile\">\n          <button type=\"submit\" class=\"fac-newsletter-banner__button\">\n            <span>Subscribe<\/span>\n          <\/button>\n        <\/div>\n      <\/div>\n      <p class='fac-newsletter-banner__consent'>\n        By entering your email and clicking &quot;Subscribe&quot;, you agree to receive newsletters and marketing emails from EVERYDAY SOFTWARE, S.L. (Factorial). See our <a href='\/privacy-policy'>Privacy Policy<\/a> for details on data use, GDPR rights, and how to withdraw consent.      <\/p>\n    <\/form>\n  <\/div>\n  <div class='fac-newsletter-banner_feedback fac-newsletter-banner-is-hidden'>\n    <h4 class='fac-newsletter-banner_feedback__title'>Subscription Confirmed!<\/h4>    <p class='fac-newsletter-banner_feedback__subtitle'>Stay tuned! From now on, you will receive the latest news in your inbox!<\/p>\n  <\/div>\n  <div class='fac-newsletter-banner_error fac-newsletter-banner-is-hidden'>\n    <p class='text-sm text-red-600'>Something went wrong. Please try again.<\/p>\n  <\/div>\n<\/div>\n\n\n<script>\n  {\n    let eventCategory = \"newsletter-banner\"\n    let formNewsletter = document.querySelector(\".fac-newsletter-banner__form\");\n    let newsletterContainer = formNewsletter.closest(\".fac-newsletter-banner__content\");\n    let feedbackNewsletter = document.querySelector(\".fac-newsletter-banner_feedback\");\n    let errorNewsletter = document.querySelector(\".fac-newsletter-banner_error\");\n    let marketingFormCampaign = formNewsletter.querySelector(\n      'input[name=\"api_qualification_entry[marketing_form_campaign]\"]'\n    ).value\n    const submitButton = formNewsletter.querySelector(\"button[type='submit']\");\n\n    if (formNewsletter) {\n      const callback = (entries, observer) => {\n        entries.forEach((entry) => {\n          if (entry.isIntersecting) {\n            window.GoogleAnalytics.trackEvent({\n              action: 'viewed_newsletter_form',\n              category: eventCategory,\n              label: marketingFormCampaign,\n              isoCode: \"gb\"\n            })\n          }\n        });\n      };\n      const observer = new IntersectionObserver(callback, {});\n      observer.observe(document.querySelector(\".fac-newsletter-banner\"));\n\n      formNewsletter.onsubmit = (e) => {\n        if (formNewsletter.checkValidity()) {\n          e.preventDefault();\n          submitButton.disabled = true\n\n          window.onSubscribeNewsletter({\n            onSuccess: () => {\n              newsletterContainer.classList.add('fac-newsletter-banner-is-hidden');\n              feedbackNewsletter.classList.add('fac-newsletter-banner-is-visible');\n              errorNewsletter.classList.remove('fac-newsletter-banner-is-visible');\n              errorNewsletter.classList.add('fac-newsletter-banner-is-hidden');\n            },\n            onError: (e) => {\n              console.error(\"error\", e);\n              errorNewsletter.classList.remove('fac-newsletter-banner-is-hidden');\n              errorNewsletter.classList.add('fac-newsletter-banner-is-visible');\n              submitButton.disabled = false;\n            },\n            eventCategory\n          })(e);\n        }\n      };\n    }\n  }\n<\/script>\n\n<\/div>\n<h2><b><a id=\"what\"><\/a>What\u2019s Causing the Labour Shortages?\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Experts across the nation are speculating over what has caused this shift as the labour markets of other developed economies have bounced back to their pre-pandemic levels.\u00a0 A few key reasons were raised in The House of Lords Economic Affairs Committee report titled \u201cWhere have all the workers gone?\u201d, including:\u00a0\u00a0<\/span><b><\/b><\/p>\n<h3><b>Early Retirement<\/b><\/h3>\n<p>Evidence points to <a href=\"https:\/\/ifs.org.uk\/publications\/rise-economic-inactivity-among-people-their-50s-and-60s\" target=\"_blank\" rel=\"noopener\"><strong>early retirement among 50\u201364s<\/strong>,<\/a> along with long-term sickness (including long-covid) and rising mental-health-related inactivity.\u00a0<span style=\"font-weight: 400;\">A recent ONS survey revealed that <strong>less than one in ten<\/strong> of these adults had done so due to health concerns. Essentially, workers are leaving the job market out of choice.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a report on the topic, Lord Bridges of Headley said: \u201cWhy have so many workers left the workforce, after years of declining inactivity? <strong>Earlier retirement<\/strong> seems to be the biggest reason. Those who are already economically inactive are becoming sicker, meaning they\u2019re less likely to return to work. So, while other factors were previously masking the impact of an ageing population on the size of the workforce, they are now reinforcing it.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These findings come amidst <\/span><a href=\"https:\/\/www.theguardian.com\/money\/2023\/jan\/25\/uk-state-pension-age-rise-68\"><span style=\"font-weight: 400;\">rumours of retirement age increasing<\/span><\/a><span style=\"font-weight: 400;\"> to 68 by the end of the 2030s. Could this be a government move to <strong>increase the workforce<\/strong> and <strong>reduce economic inactivity<\/strong>?\u00a0<\/span><\/p>\n<h3><b>Brexit<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Brexit-related fall in EU migration contributed significantly in some sectors (estimates vary). Recent government visa and Temporary Shortage List changes (2024\u201325) aim to ease pressures, but analysts caution that migration alone doesn\u2019t explain all shortages. Existing issues faced by employers have been exacerbated by the ending of <strong>free labour movement<\/strong> within the EU. Additionally, this<\/span><span style=\"font-weight: 400;\">\u00a0adjustment <strong>has been more difficult for certain industries<\/strong> that were more reliant on low-wage workers from the EU, such as transport, hospitality and other low-skilled sectors.\u00a0<\/span><span style=\"font-weight: 400;\">The CIPD reported that <\/span><a href=\"https:\/\/www.cipd.org\/uk\/topics\/workforce-trends\/#gref\"><span style=\"font-weight: 400;\">two-thirds of companies<\/span><\/a><span style=\"font-weight: 400;\"> are still planning to hire workers from across Europe for both skilled and unskilled roles. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economists have also warned against viewing Brexit as the only root of the problem. ReWAGE expert Professor Chris Forde of Leeds University said: \u201cThe reasons for the current UK labour shortages are complex. While there is some evidence that the end of free movement has contributed to shortages in some areas of the UK labour market, it is by <strong>no means the only driver.<\/strong> In fact, recruiting difficulties are not unique to the UK and several other countries have experienced <strong>high vacancy rates<\/strong> post-pandemic.\u201d We have to take into consideration all factors that contribute to the UK labour shortages and not just Brexit.\u00a0<\/span><b><\/b><\/p>\n<p><strong>\ud83d\udccc Read more our guide on how to verify non-UK nationals to prove their right to <a href=\"https:\/\/factorialhr.co.uk\/blog\/share-code-hr-team-guide\/\">work in the UK<\/a>.<\/strong><\/p>\n<h3><b>Long-Term Sickness &amp; Failure of Public Services\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s not just immigration policy that\u2019s having an impact. Research has identified the<strong> failure of public services<\/strong> and the effect this has had on long-term illness and disability as a major factor.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over <\/span><a href=\"https:\/\/www.theguardian.com\/business\/2022\/dec\/04\/why-are-so-many-people-leaving-the-workforce-amid-a-uk-cost-of-living-crisis\"><span style=\"font-weight: 400;\">2.5 million adults<\/span><\/a><span style=\"font-weight: 400;\"> of working age are currently classified as \u2018long-term sick\u2019, up half a million from 2019. This group has grown the largest since the pandemic hit, fuelling concerns about the state of our healthcare system after more than a decade of Conservative government. State budget cuts have led to an NHS at breaking point and insufficient care for those with disabilities and health conditions.\u00a0<\/span><span style=\"font-weight: 400;\">The pandemic itself is also to blame for this decrease in wellbeing.<strong> Long-covid<\/strong> has affected much of the working population, leaving many unable to work. The ONS also found that \u2018<\/span><a href=\"https:\/\/www.theguardian.com\/business\/2022\/nov\/10\/rise-in-back-pain-and-long-term-sickness-linked-to-home-working-ons\"><span style=\"font-weight: 400;\">poor ergonomics<\/span><\/a><span style=\"font-weight: 400;\">\u2019 from <strong>inadequate work from home setups<\/strong> and <strong>physical inactivity over lockdown<\/strong> have caused a growing number of neck and back injuries. Due to a high volume of long-term sickness and work absence, the UK labour shortage has been exasperated meaning it&#8217;s harder than ever for employers to find and hire new talent.\u00a0<\/span><\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-trends\"\n    data-banner-id=\"167129\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Trends\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Want see more of Factorial?<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Automate your workflows<\/li>\n                                                                                                <li class=\"not-prose\">Save time &amp; effort<\/li>\n                                                                                                <li class=\"not-prose\">Centralise HR &amp; finance with one platform<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/09\/01114707\/Discover-banner-factorial-laptop.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2><b><a id=\"how\"><\/a>How Can Companies Attract Talent in a Candidate-Led Market?\u00a0\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Despite soaring inflation and the cost of living crisis, companies across the nation will be <strong>increasing wages<\/strong> to attract and retain staff. Research by the CIPD revealed that <\/span><span style=\"font-weight: 400;\">55% of recruiters <\/span><span style=\"font-weight: 400;\">plan to raise pay this coming year.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, salary will only get you so far. Employment attitudes have shifted since the pandemic began. A job is no longer something to suffer through. Employees want to feel <\/span><i><span style=\"font-weight: 400;\">valued <\/span><\/i><span style=\"font-weight: 400;\">and<\/span><i><span style=\"font-weight: 400;\"> supported <\/span><\/i><span style=\"font-weight: 400;\">by their workplace. They want to work somewhere that aligns with their beliefs, respects their priorities outside of work and makes them feel part of something bigger.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The UK workforce are sending a message to employers; <strong>raise the bar, because we\u2019re not lowering ours<\/strong>. There are many ways you can improve how you\u2019re company is perceived to job seekers, and we\u2019ve rounded up 5 of the most effective ones below.\u00a0<\/span><b><\/b><\/p>\n<h2><b><a id=\"write\"><\/a>Write Strong Job Descriptions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Writing strong <strong>job descriptions <\/strong>that are clear and reflect your company culture are so important. They are the first contact a prospective candidate has with your company and are a crucial opportunity to stand out from competitors. Crafting them well also increases your chance of finding the most qualified person for the job to help fill job vacancies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It goes without saying that you should list the key roles, responsibilities and skill requirements for each position. But to elevate your descriptions to the next level, dedicate a section to<strong> company culture<\/strong>. List the values that are important to your company and match the tone of your writing to these. For example, if \u2018honesty\u2019 is one of your values, give as much information upfront as possible to enact this value. Or, if \u2018being human\u2019 is important to your company, keep the tone friendly and approachable and avoid overly formal language.\u00a0<\/span><\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-trends\"\n    data-banner-id=\"171825\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Trends\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Streamline Your Hiring with Factorial AI<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Quickly review and shortlist the best candidates with AI<\/li>\n                                                                                                <li class=\"not-prose\">Keep all applicant communication in one central hub<\/li>\n                                                                                                <li class=\"not-prose\">Shape your recruitment funnel to match your hiring process<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/28103031\/AI-ATS-Recruitment-Banner-1.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">A Glassdoor survey of job seekers revealed that <strong>salaries<\/strong> were the most important element of a role description, with <\/span><a href=\"https:\/\/www.glassdoor.com\/employers\/blog\/salary-benefits-survey\/\"><span style=\"font-weight: 400;\">67% ranking this highest<\/span><\/a><span style=\"font-weight: 400;\">. Highlighting pay could help you stand out from the crowd. Thinking about the bigger picture, it could also help to narrow the gender pay gap. This is what the government were hoping for when they launched the voluntary <\/span><a href=\"https:\/\/www.gov.uk\/government\/news\/government-launches-pay-transparency-pilot-to-break-down-barriers-for-women\"><span style=\"font-weight: 400;\">pay transparency scheme<\/span><\/a><span style=\"font-weight: 400;\"> in March 2022.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Benefits<\/strong> ranked second in that same survey, so be sure to include a list of perks and incentives you offer your employees. These don\u2019t have to be <em>extravagant<\/em>\u2014free tea and fruit can go a long way in boosting your employer brand! <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lastly, ensure your job descriptions are formatted clearly and succinctly so that important details are visible to skim-reading candidates. Divide each section with sub-headers and use bullet points for your lists (or even emojis, depending on your industry and company culture!). Most importantly, make your CTA stand out &#8211; it shouldn\u2019t be a challenge for job seekers to understand how to apply.\u00a0<\/span><b><\/b><\/p>\n<h2><b><a id=\"value\"><\/a>Value your employees (and shout about it)\u00a0<\/b><\/h2>\n<p><a href=\"https:\/\/www.businessleader.co.uk\/third-uk-employees-undervalued-work-research\/\"><span style=\"font-weight: 400;\">Research<\/span><\/a><span style=\"font-weight: 400;\"> has shown that<strong> one-third<\/strong> of UK employees feel undervalued at work and <strong>79%<\/strong> of them are looking for a job elsewhere as a result. That\u2019s a massive pool of job seekers who are conducting their job search with \u2018being valued\u2019 at the forefront of their minds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Company leaders should implement an <strong>Employee Value Proposition<\/strong> (EVP) to spotlight your company\u2019s dedication to this. This is essentially a trade-off. It\u2019s a collection of offerings that an organisation provides in exchange for the experience and skill sets each employee brings to the company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">People work more productively and are more fulfilled when they have a common purpose. You should therefore start with your company\u2019s main objective when creating your EVP. It should form the core of your programme, then you can outline how each individual contributes to this.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your <strong>EVP<\/strong> should be made up of 5 core elements. Before considering the elements of each of these, ask yourself: What\u2019s in it for them?\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compensation\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Career<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Benefits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work Environment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Culture\u00a0<\/span><\/li>\n<\/ul>\n<h2><b><a id=\"publish\"><\/a>Publish Employer Reviews\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to a <\/span><a href=\"https:\/\/www.powerreviews.com\/insights\/reviews-impact-uk-shoppers-2021\/\"><span style=\"font-weight: 400;\">recent study<\/span><\/a><span style=\"font-weight: 400;\">,<strong> 98%<\/strong> of UK consumers believe<strong> reviews<\/strong> influence their purchase decisions.\u00a0 The psychology of this is similar in a recruitment scenario. Job seekers are essentially browsing for a job and a positive review could be the final push to \u2018purchase\u2019 (or, in this instance, to apply).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many candidates will head to Glassdoor to get a feel of your company. Why not get ahead of them and collate your own set of reviews that you can use in your recruitment marketing? This way, you\u2019ll stand out instantly and will have more power over your <strong>employer branding<\/strong>.\u00a0<\/span><b><\/b><\/p>\n<p><iframe title=\"YouTube video player\" src=\"\/\/www.youtube.com\/embed\/KOWUsjDG_sY?si=Plu-mUR0GoF3BPtW\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2><b><a id=\"iron\"><\/a>Iron Out Your Application Process\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s likely that job seekers are firing off a multitude of applications in one go. It\u2019s a numbers game, after all. You\u2019ll therefore need to make your application process as straightforward as possible to avoid potential candidates dropping out along the way. This will also <strong>avoid damage to your reputation<\/strong>.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using an<strong> Applicant Tracking System<\/strong> (ATS) can do just this. With an ATS, you can create personalised application forms or pipeline steps. The entire process is automated so that all candidates, whether they&#8217;re disqualified or successful new hires, receive a response. This way, you provide a premium recruitment experience and show candidates that you care about the effort they took in order to apply. Ultimately, <a href=\"https:\/\/factorialhr.co.uk\/\">Factorial<\/a>&#8216;s ATS software will simplify the recruitment period so you can move on to onboarding your new hires.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2705 Try Factorial\u2019s ATS for <\/span><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><span style=\"font-weight: 400;\">free with our 7 day trial<\/span><\/a><span style=\"font-weight: 400;\">, alongside all of our digital HR tools. In the meantime, watch our video showcasing the features of our ATS.<\/span><\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-trends\"\n    data-banner-id=\"171825\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Trends\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Streamline Your Hiring with Factorial AI<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Quickly review and shortlist the best candidates with AI<\/li>\n                                                                                                <li class=\"not-prose\">Keep all applicant communication in one central hub<\/li>\n                                                                                                <li class=\"not-prose\">Shape your recruitment funnel to match your hiring process<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/28103031\/AI-ATS-Recruitment-Banner-1.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ONS data (Oct 2025) states high levels of economic inactivity, referring to the professionals who are not working nor seeking work. Additionally, it appears that employers are posting fewer jobs across many sections, and unemployment is slowly rising. Given the current job market in the UK, companies are fighting tooth and nail to acquire top<a href=\"https:\/\/factorialhr.co.uk\/blog\/whats-causing-the-uk-labour-shortages\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":151,"featured_media":93571,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[343,339],"tags":[],"class_list":["post-93520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-trends","category-recruitment-en-gb"],"acf":{"topics":"hr-software"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What&#039;s Causing the UK Labour Shortages? | Factorial<\/title>\n<meta name=\"description\" content=\"Understand the main factors contributing to the UK labour shortages. Discover 4 ways companies can recruit talent in a candidate-led market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.co.uk\/blog\/whats-causing-the-uk-labour-shortages\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s Causing the UK Labour Shortages?\" \/>\n<meta property=\"og:description\" content=\"Understand the main factors contributing to the UK labour shortages. 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