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With business confidence rising over the last month, new data shows that both contract and permanent hiring is picking up across the country.

According to the Association of Professional Staffing Companies (APSCo), the Chancellor’s focus on skills during the Budget announcement is the reason behind this confidence, however, success could be short-lived.

The APSCo believe that if pressing skills issues are not addressed, the recruitment landscape could soon face challenges.

Tania Bowers, Global Public Policy Director at APSCo, commented, “The monthly increases in hiring activity noted in March are a positive sign that general confidence in the UK economy is on the up again.

“While at APSCo we’re optimistic about the recruitment landscape for the months ahead, we remain concerned that the skills shortages facing the country are still growing faster than solutions are being implemented.

“An overnight solution isn’t viable given the breadth of the dearth of talent, however, there are elements that have been overlooked. As a case in point, the current scope of the use of Apprenticeship Levy funds is too narrow and isn’t fit for purpose in a flexible employment landscape.”

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Tania added, “A broader skills levy which accommodates modular training, access to training for independent professionals and the self-employed, and enabling the levy to be used to fund flexi-apprenticeships for agency workers is needed.

“Where resources cannot immediately be found in the domestic market, the country’s employers also need an attractive route of employment for global talent.

“The current Tier 5 and fast track visa schemes are too narrow in focus and funding needs to be increased for the Home Office to both support existing systems and drive new visa routes which are more viable for highly skilled, self-employed project workers.

“We might be seeing positive trends in the recruitment market, but without the skills needed to fill these roles, progress will be limited to say the least.”

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