Businesses in Wales are continuing to face challenges regarding recruitment, the ongoing skills shortage and labour costs, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.
In the survey for Q1 of 2024, 46 per cent of businesses in Wales reported that they had attempted to recruit staff, predominantly for full-time and permanent roles.
Salaries and other labour costs were also stated as a key business pressure, with 75 per cent of businesses in Wales feeling under pressure to raise their prices because of these costs. However, despite these challenges, there is optimism and 46 per cent of Welsh businesses believe that turnover and profitability will improve over the next 12 months.
“While the economy is caught in a low-to-no growth cycle and managing the effects of interest rates and inflation, businesses have been hesitant to invest in training and skills. With consistent and lower inflation, we hope that the Bank of England will lower interest rates to stimulate investment into skills and the seeds of economic growth.
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