Business owners in the West Country are struggling to hire staff despite growing confidence in the recovery of the economy.
In a Business West survey of more than 400 firms in the region, some 62% reported problems with recruitment.
The gradual unlocking of the 海角视频 economy has led to an uptick in the jobs market, with nearly half of all businesses questioned (45%) trying to hire during the past three months.
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Businesses blamed recruitment issues on the labour market post-pandemic and post-Brexit, as well as the competition for talent spurred by the economy’s unlocking.
The results were collected before the government announcement of the four-week delay to the easing of restrictions.
Jim Roach, managing director of ARV Solutions, a Bristol recruitment firm specialising in the construction industry, said the labour market challenges were posed by Brexit.
“The lack of skilled people wanting to or being able to work in the 海角视频 from abroad is a source of concern for us,” he said.
The gap between labour supply and demand, and the rush to recruit skilled workers has led to fierce competition, pushing up wage demands, according to business owners.
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“We cannot find the staff we need and cannot afford them when we do,” said Hannah Lovegrove of Devon-based skincare brand Lovegrove Essentials.
However, companies also reported the first positive sentiment for the 海角视频’s economy in at least four years.
Nearly half of all businesses felt prospects for the 海角视频 economy were positive and an even higher proportion (68%) said they were confident or very confident about their own firm’s prospects over the next 12 months.
The second quarter saw a bounce back in domestic sales compared with the previous quarter. Some 42% of businesses said demand for products and services had grown, with orders following the same path.
Net domestic sales were also in positive territory for the first time in a year, whereas export sales and orders lagged, dragged down by Brexit-related issues and international travel restrictions.
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Phil Smith, managing director at Business West, said: “After 15 months in the doldrums, finally we have some positive news to report, with renewed optimism in the South West economy.
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“This is quite a remarkable turnaround from the height of the pandemic when South West business confidence was at its lowest ebb.
“[But] the sudden resurgence of business activity has meant that businesses who need to recruit are confronted by a tight labour market, especially for skilled staff.”
Businesses across the board reported increases in input costs, especially related to logistics and transportation, and raw materials.
A total of 31% of businesses have increased prices, but the proportion was higher in the manufacturing sector at 40%. A further 35% of firms plan to increase prices in the coming quarter.