Recruitment challenges continue to stall hiring

14 Jul 2026

Less than a quarter of firms are expecting to increase the size of their workforce over the coming months, according to the British Chambers of Commerce (BCC).

The BCC's Quarterly Recruitment Outlook shows that 66% of businesses are planning to keep with their existing staffing numbers, while 11% of firms are planning to cut staff.

The research also shows persistent hiring challenges for businesses, with 73% of firms trying to find new staff reporting difficulties.

Construction is the sector most likely to be expecting their workforce to grow, with 28% of firms saying they plan to increase their staffing levels over the next three months. Meanwhile, with labour costs increasing, only 13% of retailers expect to hire more staff.

Patrick Milnes, Head of People and Work Policy at the BCC, said: 'Skills shortages and recruitment difficulties are holding back too many firms from investing, growing and taking on new opportunities.

'Businesses tell us they want to upskill and develop their existing people, but the current system can be hard to navigate and too often fails to meet their needs.

'If the next Prime Minister is serious about unlocking growth, then helping businesses invest in skills must be at the heart of their economic plan.'