So, it’s clear something needs to change. Businesses are aware of their most vulnerable pressure points – and they also know what levers can be pulled to improve access to labour.To cope with shortages, many firms are focused on attracting and retaining employees.
But this makes it harder to concentrate on the productivity-boosting investments – like training and automation – that really matter in our pursuit of economic growth.should introduce incentives to help business make the investments needed to bolster productivity.But we also need tackle other roadblocks to make sure industry doesn’t just cope – it thrives. That means adopting a more flexible approach to immigration.
There have been some encouraging signs that the Government is listening, as ministers intend to look at these issues. But firms can’t wait around for action. As a first step, the Shortage Occupations List should be updated urgently, to enable firms to meet crucial recruitment needs. We also need to reform the Apprenticeship Levy, which has held firms back from investing in skills.
By addressing current labour market shortages, the Government can build solid foundations which enable businesses to reach growth targets and increase prosperity for all – an aspiration firms in our region unequivocally share.
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