These shortages have a knock-on impact on employee wellbeing, which is likely impacting organisations' productivity and affecting their ability to retain valued staff. The report explores employers' views on staff retention, recruitment and training, as well as the role of young people in helping them to address their skills shortages going forward. It also looks at the impact of AI on early-career roles and future talent pipelines, with more than half of employers reporting AI is having an impact on their recruitment or hiring processes. With more than one million young people aged 16-24 not currently in education, employment or training, the report reveals some potential impacts of AI on their early career prospects and highlights the need to support and enable a future talent pipeline by giving them the opportunities to realise their potential.
This 2026 Business Barometer reveals that the majority of UK organisations continue to face skills shortages and challenges despite employers increasingly benefitting from a looser recruitment market.
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