Strong growth in Yorkshire, but skills shortage remains

Job creation and economic growth in Yorkshire is strong, but the issue of skill shortages looms, according to three separate surveys.

In KPMG's survey of Northern recruitment consultants, it was revealed that although the number of permanent and temporary staff being hired is increasing, there is a lack of candidates with the skills most suited to the company.

On the other hand, business advisors BDO noted that hiring intentions are significantly greater and stronger than they were during the mid-2000s boom. Lending weight to this, Lloyd Bank Commercial's latest business activity index showed that private firms in Yorkshire are continuing to outperform the UK average.

Although this is good news for the region, BDO expressed concern surrounding the fact that a lack of productivity growth still remains.

Terry Jones, head of BDO Yorkshire, said: "While it is encouraging to see strong business confidence, the continuing poor labour productivity performance is a very significant concern. Although employment growth in recent years has been strong, much of this has been in part-time jobs.

"Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policymakers of all persuasion must take on this productivity puzzle."

However, BDO's latest business activity index Output and Optimism Indices predict that economic growth in Yorkshire will continue to expand and remain above the 100 mark, with predictions of 103.9 in three months and 104.9 in six months' time - marking the highest business confidence levels since last summer.

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