BDO says nearly a third of mid-sized businesses in Yorkshire see recruiting and retaining people with the right skills as one of their biggest barriers to growth over the next six months. Its latest bi-monthly survey of 500 mid-sized businesses found that 32% of companies in the region cited skills shortages as a key constraint.
The issue runs beyond Yorkshire. In the Midlands, 37% of businesses said skills shortages were holding back growth, while a third of companies in both the South West and South East said the same. Sector responses showed similar pressure across retail, hospitality and leisure, and manufacturing, where businesses reported difficulty finding and keeping workers with the required skills.
The survey was published on 21 April, the same day government figures showed unemployment had fallen to 4.9%. BDO also pointed to higher hiring costs linked to increases in the National Minimum Wage and National Insurance Contributions. Even so, the research found many regional mid-market businesses are still investing in future talent pipelines. Earlier BDO research found 30% of mid-sized companies in Yorkshire planned to invest in apprenticeships over the next 12 months, while the latest survey found 47% attend careers fairs and similar events.
Dan Brookes, partner at BDO in Yorkshire & the North East, said: “These figures show just how acute the skills challenge has become for mid-sized businesses in the region, with clear similarities across other regions and sectors. Let’s be clear: this is not a new problem for businesses. However, unfortunately it just adds to the wide range of challenges regional companies are currently grappling with, including rising operational costs, a squeeze on margins, and ongoing geopolitical uncertainty as a result of the conflict in the Middle East.” He added: “With mid-sized businesses providing one in three private sector jobs across the UK regions, their contributions to the economy should not be overlooked.”
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