Plans to hire new staff set to slow in Kent as bosses continue to struggle to find good applicants, says Kent Invicta Chamber report

Businesses in Kent are beginning to curb plans to take on more staff, with finding skilled people remaining a problem.

Those looking to increase their workforce over the next quarter slipped slightly by two points to 25%, its lowest level for a year and way off the 40% figure in the first three months of 2015.

The proportion of firms which hired new staff in the last three months increased three points to 27% in the fourth quarter of 2016, according to the quarterly economic survey by Kent Invicta Chamber of Commerce.

The proportion of firms which hired new staff in the last three months increased three points to 27%
The proportion of firms which hired new staff in the last three months increased three points to 27%

More than one in six (61%) of bosses said they had tried to hire in the last three months – its highest level since the fourth quarter of 2014 – but few found the experience straightforward.

A total of 79% said it was hard to find suitable applicants. The figure has remained above 75% in all but one of the last eight quarters.

The Kent Invicta Chamber report said: “Employment increased slightly overall in Q4, indicating gradually greater confidence, mostly in services.

“However, employment expectations show more caution. A significant minority still expect to shed staff. Larger organisations are particularly cautious.”

The number of firms trying to hire was at its highest level since the fourth quarter of 2014
The number of firms trying to hire was at its highest level since the fourth quarter of 2014
The proportion of firms saying it is hard to find good applicants has been above 75% for seven of the last eight quarters
The proportion of firms saying it is hard to find good applicants has been above 75% for seven of the last eight quarters

The concerns about investing in people come as about a third of firms said concerns about exchange rates affecting their business more than three months ago.

The lower value of the pound since the EU referendum last June has increased costs for companies which import goods.

Indeed, three in 10 bosses reported raw material prices as a pressure on their business, its highest level since the first quarter of 2013.

The survey showed it affected 68% of manufacturers, compared to 17% of companies in the services industries.

The proportion of firms saying the cost of raw materials was of greater concern than three months ago is at its highest level since the first quarter of 2013
The proportion of firms saying the cost of raw materials was of greater concern than three months ago is at its highest level since the first quarter of 2013
Growing numbers of firms tried to hire in the last three months
Growing numbers of firms tried to hire in the last three months
Staff levels over the next three months are expected to flatten
Staff levels over the next three months are expected to flatten

Three in 10 also said worries about corporate taxation were higher than the previous quarter.

Surprisingly, inflation concerns were reported by only one in four of the survey’s 189 respondents, its lowest level since the financial crisis in 2008.

The Kent Invicta Chamber report said: “Unsurprisingly in view of the weak pound, it is mainly manufacturers who report raw materials pressures in Q4.

“Consistent with the rising concern about raw material costs is the near doubling of those concerned about exchange rates since the Brexit referendum.”


More from Kent Invicta Chamber of Commerce's quarterly economic survey:

UK and foreign sales stabilised for Kent firms in the fourth quarter of 2016

Kent firms planning to put up prices at highest level for six years

Investment plans slow at Kent firms in last quarter of 2016

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