The latest Quarterly International Trade Outlook reveals that while the volume of UK exports remains high, and confidence among both services firms and manufacturers is increasing, more than two thirds of exporters (68%) reported difficulties hiring staff during Q2 2015 - the highest level since Q4 2013. The greatest area of recruitment difficulty reported was in finding skilled and professional staff.
John Bridge OBE DL, Chief Executive of Cambridgeshire Chambers of Commerce, said: “The skills shortage is an issue identified several years ago by organisations across Cambridgeshire but that is starting to have a real impact on productivity. The government has announced ambitions to massively increase UK exports by 2020 but it’s clear that without a clear strategy to address skills shortages, that target is increasingly lacking credibility.
“There is a real mismatch between the skills being taught to young people and those that employers are seeking to assess employability. As a result we desperately need education providers and employers to continue to work together to identify the skills, attitudes and behaviours that will equip young people for the world of work. From self-discipline and communications skills to specific knowledge of manufacturing processes and foreign languages, employers have a key role to play in identifying the skills crucial to business growth.”
The International Trade Outlook also showed that firms are increasingly confident that turnover and profitability will rise in the coming months, leading to a third of firms (36%) expecting to take on additional staff in the next three months as a result. However, this confidence is rising much more quickly among service firms than among manufacturers.
There is also a growing expectation of export sales increasing over the coming months. The balance of those expecting exports to rise stood at +24 for service firms and just +12 for manufacturing firms**.
**Balance figures are determined by subtracting the percentage of firms that reported a decrease from the percentage of firms that reported an increase.
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