The
economic downturn is challenging skills shortages as the biggest problem facing
European businesses, according to research.
The
survey by venture capital company 3i shows that lack of demand for goods and
services increased from 10 per cent last year to 18 per cent this year.
Skills
shortages were cited by 23 per cent of European companies as their biggest
problem, down from 28 per cent last year.
Competition
has eased between businesses with only 21 per cent of businesses citing this a
problem compared to nearly 50 per cent last year. It was more of an issue in
France, Spain and Italy, but lack of demand dominated the concerns of UK
employers.
Liz
Hewitt, director of corporate affairs at 3i, said, “Skilled people are
increasingly difficult to source and are always in demand.
“The
survey shows that these employees are even more important when demand for the
company’s products are reduced.”
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The report polled 1,000 companies in the UK,
France, Germany, Italy and Spain.
