Most firms attempting to recruit are facing difficulties in finding staff, according to new research by the British Chambers of Commerce (BCC).
Hospitality, construction, logistics and manufacturing companies are most likely to report difficulties, said the BCC.
Smaller firms said that increasing wage pressures were making it harder to compete for staff.
The BCC said its survey of 5,500 firms showed the pressures they face to recruit remain at record high levels.
The number of companies attempting to recruit this year stood at 60 per cent, slightly down on the final quarter of 2021, but those reporting difficulties filling roles remained at an historically high of 78 per cent, said the BCC.
Issues raised by those surveyed included disruption due to COVID-19 and a drop in the availability of foreign staff, as well as wage competition.
Professional services firm in Shropshire replied: “We are finding it difficult to recruit all levels of staff.
“Applicants are able to choose between several employers as we are all chasing the same people.’’
Jane Gratton, head of people policy at the BCC, said: “It’s now harder than ever for businesses to fill job vacancies and there are no signs of improvement.
“In an increasingly tight labour market, competition for skills is ramping up wage costs, leaving many firms unable to recruit the people they need.
“When combined with the escalating price of energy, shipping, raw materials and other costs, it is a precarious situation for businesses.
“Inevitably, it is the smaller firms, with little in the way of cash reserves after two years of the pandemic, who are most exposed to the risk all these present.’’
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The UK Government needed to take concrete action to address labour shortages as they are a key factor in the economy’s stuttering recovery.
“If firms cannot get the people they need, then productivity and revenue are two of the first casualties.’’ (dpa/NAN)