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Lack of skills a major risk to growth

Lack of skills a major risk to growth

One-in-three Scottish companies are having trouble recruiting the skilled workers they need to grow their business, an alarming new study has found.

Research by the Federation of Small Businesses in Scotland, which represents more than 19,000 members, found confidence among firms north of the border was growing as the general economic outlook improved.

However, a third of companies also reported concerns their expansion plans were being hit by a lack of talent.

“It is alarming that one-in-three Scottish small firms report that a shortage of skills could be a potential barrier to growth when there are still 163,000 Scots unemployed,” Andy Willox, the FSB’s Scottish policy convener said.

“New forums, designed to develop better links between industry and education, are a welcome initiative but they can’t be the end of the story.

“Extra effort must be applied to tap the potential of the smallest businesses.

“Small firms especially value soft skills: we’re often looking for people with the right attitude, not just the right certificates.

“We need people who can manage their own time and work comfortably with customers and colleagues.

“Educators alone can’t solve this problem the business community has a big role getting young people ready for the world of work.”

The comments came as the Scottish Building Federation released its quarterly survey of the state of the industry.

The headline confidence measure moved to a record peak of +35, up six points on the first quarter of the year.

However, questions asked of employers as part of a Construction Industry Training Board review also highlighted skills as a major issue for the sector.

SBF managing director Vaughan Hart said: “Margins remain very tight but there is at least a supply of new work out there now, which certainly wasn’t the case two years ago . . .

“Certain sectors of the industry are faring better than others and we’re concerned that industry employment is lagging significantly behind output.

“I’m encouraged that employers view apprenticeships as a top priority for future investment from the industry levy.”