Half of businesses struggle to recruit new staff

RECRUITMENT is still a major concern for firms across the West Midlands, a newly-launched “West Midlands Quarterly Economic Snapshot” reveals.

The findings were drawn from statistics from bodies such as IHS/ Markit CIPs and the Office of National Statistics, along with data from quarterly economic surveys by the regions Chambers of Commerce.

Just under a thousand businesses completed the survey, with 72 per cent of them operating in the services sector and 28 per cent in the manufacturing sector.

The biggest problem concerned recruitment, with 50 per cent firms saying they faced difficulties.

Sixty-three per cent of manufacturers and 45 per cent of service firms said they faced labour problems. But there was brighter news, with 67 per cent of all firms expecting their turnover to increase in the next 12 months and 62 per cent predicting profit levels to rise.

Thirty per cent reported an increase in export sales, whereas 11 per cent recording a decrease. Fiftynine per cent expected their overseas orders to stay the same for Q1.

Paul Faulkner, chief executive of Greater Birmingham Chambers of of Commerce, said: “The data from the Snapshot offers an interesting compliment to the official employment statistics for the West Midlands.

“Based on just under a thousand responses from businesses across the region, half of the firms surveyed faced recruitment difficulties and almost two-thirds of manufacturers that attempted to recruit encountered problems – businesses in Coventry and Warwickshire were particularly affected. Once again, this points to skills shortages continuing to affect local firms’ ability to source the right people for the right roles.”

Corin Crane, chief executive of Black Country Chamber of Commerce, said: “It is good news that a relatively low figure of 11 per cent of firms reported a decrease in export sales in Q1 2018.

“With Brexit negotiations moving on to what a future trading relationship will look like with EU, the nitty gritty of trade specifics and the guarantee of a two-year implementation period, businesses can now benefit from genuine clarity from the Government.”

To see the full report, go to: www. greaterbirminghamchambers.com/ research-campaigning/our-economy