Half of employers are struggling to find skilled candidates when recruiting, according to research.
A survey by the Recruitment and Employment Confederation (REC) found that in June 2018, 50% of employers are concerned about finding sufficient candidates for permanent roles.
This is an increase of 8 percentage points since the same research was conducted in June 2017.
At the same time, economic confidence among employers is growing steadily, as 32% said they felt more positive about the future of the UK economy - an increase of 2 percentage points on the previous month.
The REC claims employers have the potential to grow, but are being "held back" by a shortage of skilled workers.
Tom Hadley, director of policy at the REC, said:
"It is encouraging to see employers continue to feel more optimistic about the UK economy which has translated in to having a positive impact on hiring intentions for both permanent and temporary staff.
"We want the UK jobs market to remain a success story but we must act now to address looming challenges that will impact on both demand and supply of staff."
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