Half of employers in Yorkshire and Humber have reported hard-to-fill vacancies despite increasing pay, new CIPD research finds.

The CIPD’s Labour Market Outlook is based on surveys sent to over 2,000 employers across various sectors.

The data suggests 64 per cent of the region’s employers anticipate problems filling vacancies over next six months.

Some companies are exploring other working practices to boost job quality. 41 per cent of organisations plan to increase investment in staff training and development, whilst 34 per cent aim to improve flexible work options.

Around 37 per cent of employers in Yorkshire and Humber are planning to improve the people management capability of their managers to improve motivation and performance.

For the second consecutive quarter, median basic pay increases are expected to be 3 per cent - sustained at the highest level recorded since the report series started in 2013 and falling short of forecast increases to inflation.  

Pressure on pay could ultimately feed into higher prices for products and services. Indeed, 35 per cent of the region’s employers said that they had raised prices in response to cost pressure.

The CIPD’s Daphne Doody-Green said: “Right now, it’s a candidate’s market and that means new recruits have power to dictate terms that work for them.”