Skills shortage could drive up wages

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The UK labour market is tightening, with employers finding it harder to recruit staff, according to a survey of employment agencies, the BBC has reported.

The survey says that pay rates for both permanent and temporary staff are rising quickly due to a continuing fall in the number of job applicants.

Last year’s Brexit vote is also driving some EU nationals home, making it harder to fill a wide variety of jobs, the report suggests.

Official figures have shown employment levels in the UK at record highs.

The comments reflect the Chamber’s own survey work, which has found that about a third of companies plan to recruit in the near future if they can find workers with the skills they need. But a similar number have said they are struggling to recruit.