Skill shortage could cost £34bn

Skills shortages could cost UK private businesses £34 billion a year, a new study published today has found, prompting a call for such firms to help safeguard their future.

According to Pwc’s European Private Business Survey, 52 per cent of such firms said the inability to recruit suitably skilled and qualified employees has a direct impact on turnover, equating to approximately £34bn in lost revenues annually.

The study, which covered 2,450 companies across 31 European countries, found that about the same percentage of firms of across Europe shared the same concerns, amounting to a possible €324bn annual total bill.

Suzi Woolfson, the accountancy giant’s UK private business market leader, said: “Private businesses need to invest in equipping current and future employees with skills that keep pace with technological change.

“Collaborating with governments, schools and universities will be crucial to help identify the skills private businesses will need tomorrow.

“Responsive, flexible and nimble education systems will help provide school-leavers and graduates with knowledge and expertise that is relevant to the future world of work. Employers also need to take responsibility for enabling life-long learning and re-skilling existing staff.

“If private businesses want to attract and retain talent in a post-brexit world, they’ll also need to think about the appeal of their working environments. Modernising their approach and concentrating on their culture and values as well as just revenues will be key.”

The report also found that 23 per cent of UK companies are upbeat about Brexit, but this made it the most confident country in Europe about the issue. Furthermore, about 69 per cent of UK companies said they were confident of future growth, beating the 65 per cent average.