February 24, 2024

South West News

South West News from Gloucestershire to Cornwall

Almost half of businesses in South West experiencing worker shortage

Almost half (44%) of south west based businesses are experiencing a shortage of workers, according to the latest ONS Business Insights data analysed by tax relief specialist Access2Funding 

The data analysis found that the region with the highest number of businesses facing skilled worker shortages is the south west, followed by Wales (42.5%) and the East Midlands (42.2%), whilst the total percentage of businesses experiencing a shortage of workers across the UK is 36%.  

As a result of a shortage of workers, 58% of businesses in the region had employees working overtime and 40% were unable to meet demands. 

Across the UK, businesses undertaking human health and social work activities reported the most worker shortages (56%), making it the industry most significantly affected by worker shortages, followed by those working in the accommodation and food service sector (52%), transportation and storage (37%), construction (37%) and manufacturing (35%). 

Dawn Coker, managing director of tax relief specialist Access2Funding, said: “Our analysis correlates with a recent report, which found that the rise in vacancies in the UK was highest in jobs that relied most heavily on EU workers pre-pandemic, such as hospitality and warehouse and transport workers.   

It was quite alarming to discover that the skilled worker shortage in the south west is 8% higher than the UK average. Unfortunately, attracting and retaining talent is one of many challenges businesses are facing right now that hinders business growth, however a glimmer of hope can be found in various government tax relief schemes and grant funding that supports innovation.” 

The data analysis also revealed south west businesses foresee the main concern for them in October 2022 to be inflation of goods and services prices (34%), followed by energy prices (26%). They are least concerned about taxation (1%). 

Access2Funding is a tax relief specialist, supporting innovative businesses with business growth and innovation funding.