WEALTH September 3, 2025 0 Comments

Talent Shortage Alert: Why Recruiters Are Bracing for Vacancies That Could Blow Up Your Business Growth

Ever wonder why recruiters seem like they’re stuck in a game of musical chairs—vacancies popping up left and right, but the right talent just isn’t grabbing a seat? That’s the paradox the Employment and Recruitment Federation (ERF) is flagging loud and clear. While 55% of recruiters are gearing up for more job openings in the next few months, only a slim 39% believe the pool of qualified candidates is going to swell. It’s like having a roaring engine with no fuel in sight. July’s hiring activity showed a market holding steady, but beneath that calm is a tension—demand is high, yet skill shortages throttle growth. With unemployment sitting at a tight 4.9% and nearly 2.8 million folks employed nationwide, the battle for talent isn’t just fierce; it’s a test of how smart policies and savvy hiring strategies can steer the ship in choppy waters. As Budget 2026 looms, the call for better training support and cost relief is louder than ever—because businesses can’t just wish for talent; they’ve got to build it. Ready to dive deeper? LEARN MORE.

Recruiters expect vacancy levels to rise in the months ahead but warn that talent supply remains their biggest challenge, according to the Employment and Recruitment Federation (ERF).

More than half of recruiters (55%) anticipate an increase in vacancies over the next three months, compared to 12% who expect a decline.

While demand remains strong, confidence about candidate supply is weaker, with only 39% projecting the pool of qualified candidates to grow.

The ERF’s Market Monitor, supported by ICON Accounting, found that hiring activity in July was largely stable.

Permanent and contract roles saw little overall movement, with most firms reporting no change in vacancies or placements compared to June.

Temporary hiring showed more variation, with roughly one in three firms recording growth in vacancies and placements, although about one in five reported a fall.

The Monitor findings have been published against a backdrop of record national employment, with 2.8m people now in work and the unemployment rate at 4.9% in July.

“The July Monitor shows a steady market, not slowing,” said Siobhán Kinsella, president of the ERF.

“Employers are still hiring and expect more vacancies in autumn, but talent supply remains the pinch point. Demand is strong, it’s access to skills that continues to test the market.