Skills gap ‘hampering economic growth’

Britain's economic growth is threatened because one in three mid-sized manufacturing companies is being forced to recruit abroad, according to research.

The skills shortage means almost eight out of 10 businesses with turnovers of £5m to £300m say they are suffering, or will in the future suffer, because they are unable to source British workers with the skills they need.

Insurer Zurich’s study found the problem was being felt more acutely in family-owned companies, but these are much more likely to look farther afield for the talent they need, with 46pc ready to go abroad for staff, compared with 29pc of non-family-owned companies.

Matt Hartigan, Zurich’s head of UK corporate insurance, said: “Skills gaps continue to put British manufacturing under huge pressure. Almost all mid-sized businesses share concerns about increased risks because of a shortage of qualified workers, which is clearly hindering overall growth.”

About £139bn of Britain’s economic output comes from manufacturing and this could decline if efforts are not made to tackle the problem, Mr Hartigan said.

Bill Taylor, managing director of family-owned Brighton Sheet Metal, said: “We are recruiting Poles who have much higher skills than are needed for the jobs, but they are still very willing to do them.”

Separate research published today found that British professionals are in line for an above-inflation salary increase this year, with average pay expected to climb by 4pc, according to the recruitment firm Robert Walters.

Workers in the North are due to get the biggest boost.