What are the financial and non-financial barriers facing small and medium sized employers when recruiting people who are economically inactive?

FSB NI
This research investigates the challenges small and medium-sized employers (SMEs) face when recruiting individuals who are economically inactive. Economically inactive individuals, comprising around 27.2% of Northern Ireland’s working-age population (16–64), are not in work and not actively seeking employment due to a variety of reasons, including disability/long-term health conditions, looking after family/home, or early retirement.1
In the context of the UK Government and Northern Ireland Executive goals to reduce economic inactivity and address post-pandemic labour shortages, we will investigate how SMEs engage directly or indirectly with this group. The research aims to identify both financial and non-financial barriers. Financial barriers might include costs associated with training or adjustments to workplace practices. Non-financial barriers may involve lack of awareness of support programmes or perceived skills gaps.
With a network of around 6,000 businesses in our membership, we intend to engage with businesses, third sector, councils and government officials right across Northern Ireland via surveys, interviews and workshops, to ensure this research includes the lived experience of employers.
Whilst mindful that the employer perspective is just one piece of a complex puzzle to address economic inactivity, understanding their experiences will provide insight into the practical challenges and support needed to improve recruitment at a time of labour shortages. The findings will contribute to policy and practice by informing strategies that can better align employer needs with the broader goal of increasing labour market participation.