South West businesses struggling to recruit skilled staff

Business West’s latest Quarterly Economic Survey , which polls businesses across the South West, has reveals 69 per cent reported difficulties in recruitment.

The issue was a particular problem for for skilled manual/technical and professional/managerial roles.

Despite this, 79 per cent of respondents are looking to recruit full-time positions and 49 per cent for permanent positions.

General economic conditions and business uncertainty remain the top concerns, with 62 per cent and 51 per cent of businesses respectively.

Concerns about inflation have eased slightly, but it remains a significant issue for a quarter  of respondents.

A significant number of survey comments indicate that political events, such as elections and changes in government policies, are major concerns for businesses. The uncertainty impacts confidence and planning.

Matt Griffith, director of policy at Business West, said “These findings underscore the ongoing recruitment challenges and capacity issues faced by businesses. Addressing these concerns is crucial for enhancing productivity and growth in the region. Further focus on skills development and workforce planning could be instrumental in mitigating these challenges.”

“The business landscape is grappling with ongoing economic challenges and moderate optimism in specific areas. There is a slight improvement in confidence regarding the UK economy, but businesses still face significant uncertainties and pressures. However, the election outcome, whatever that may be, will at least bring businesses some certainty and a government that will set out an economic strategy for the next five years. This should help our businesses to plan.”

Phil Marsh, chief executive of S&B Automotive Academy in Bristol, said “We are unsure how things will differ with a change of government. Around 70 per cent of our business is supported by apprenticeship training. We are unsure how this will be impacted by changes in policy and how funding will be impacted. Economy and inflation play a big part in buying resources. Our numbers are improving and things are currently looking much better for us.”

Domestic sales remained positive in the second quarter with a net balance of five per cent, indicating resilience despite broader economic challenges.

Manufacturers reported stronger performance compared to businesses in the service sector.