Fears of skills shortages as firms hire more staff

Jobs growth is expected in every region, with Scotland leading the way

Half of firms plan to hire more workers next year, but some jobs could remain unfilled because of skills shortages, a study indicates.

A survey of 323 businesses by the CBI showed that permanent jobs should outstrip temporary work in 2015 as the economy continues to recover. But skills gaps and worries about new regulations damaging job creation have emerged, said the report.

Jobs growth is expected in every region, with Scotland leading the way, while employment prospects for young people have improved.

Companies in the study, which employ more than 1.2 million, expect pay to rise in 2015, although at a “cautious” rate.

“Businesses are planning to create jobs in every region next year, and more and more of those jobs will be permanent,” said Katja Hall, the CBI’s deputy director general. But she added: “It’s a concern that the UK’s growing skills gap is now seen as the number one workforce threat to the long-term health of its economy. Companies and the Government need to work together to find ways to develop skills within the workforce and help employees to move into higher skilled and better paid jobs.”