A survey by the Institute of Personnel and Development found that almost one in three employers could not find a single applicant to apply for a job.
The research found that seven out of ten were having problems finding new staff, compared with six out of ten last year.
Lack of experience or skills were the main reasons, but other problems included pay, with many firms finding that applicants wanted more money than was being offered.
Professional jobs, including IT and engineering posts, are the hardest to fill.
Policy adviser Angela Baron said employers needed to "wise up" about what people were looking for in a new job.
"Although money is important, people are put off by restrictive, old-fashioned attitudes about when and where they work.
"Some employers have to accept the death of the 9-to-5 worker who sits in an office every day. People are attracted by other benefits, for example, being more flexible about hours and where they work."
Small firms are paying well above the level of the national minimum wage, with average pay over £1 an hour more than the new statutory rate.
Apoll of over 8,600 small companies found that the average hourly rate for the lowest paid worker was £4.69, compared to the minimum wage of £3.60.
Part-timers are on an average of at least £4.26 an hour, said the report by the Federation of Small Businesses.
Among those surveyed, two-thirds said the minimum wage has had no impact on job creation, although one in three said they were now less likely to take on new workers.
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