In a survey of 6,000 businesses, almost half (45%) said that it was very or quite difficult to find the right member staff for a position, according to the British Chambers of Commerce (BCC).
The UK's overall pay packet was £52 billion smaller last year compared with the start of the financial crisis, according to research published by the TUC, marking the launch of its pay rise campaign.
Staff confidence in business leaders and employers across the public sector has hit an all- time low.
Long-term unemployment is at crisis levels and getting worse, even as the rest of the labour market improves, the TUC has warned.