Skills shortage bites

Jan 28 2008 by Iain Laing, The Journal

THE hunt for skilled employees was one of the biggest challenges SMEs faced in 2007, according to new research.

This looks set to continue throughout 2008, with managing cash flow and increasing fuel prices also cited by small business managers as major concerns for the year ahead, said a report by Bibby Financial Services.

A third of SMEs predicted that finding skilled employees will be top of the challenges for their business this year, with construction (64%), transport (55%) and the business services (31%) sector expecting to be the worst affected. Already this year, the potential consequences of sector skills shortages have been vividly demonstrated in the disruptions to the West Coast Main Line rail service over the New Year which saw rail repairs held up due to the lack of skilled workers.

To avoid similar situations, many companies are already choosing to export jobs overseas.

Bibby managing director David Robertson said: “It is vital that Gordon Brown honours his promise to ‘up-skill’ the nation as SMEs across the UK in many different sectors are feeling the impact of skills shortages.”