Labour shortages and skill gaps pose a risk to growth in key SME sectors, according to the latest SME Monitor published by Banking & Payments Federation Ireland (BPFI).
The report notes that with employment at historically high levels and the employment rate at 74.2% in Q2 2023 in Ireland, businesses were reporting challenges in hiring suitably trained and skilled staff with small and medium-sized enterprises (SMEs) particularly affected.
A recent report published by Chambers Ireland shows that over 95% of micro-businesses in Ireland were experiencing skill gaps. Skill deficits across different roles vary between micro, small and medium firms. However, one common area where there are significant skill deficits reported across the SMEs is around technically qualified professions and trades.
61% of SMEs in Ireland find it difficult to recruit staff in machine operators and craft and skilled trades workers.
Brian Hayes, Chief Executive, BPFI said that the “it’s clear that labour shortages risk growth in key SME sectors, particularly construction, where SMEs account of 80% of employment. Government efforts through apprenticeship schemes and work permit programmes will be key in addressing emerging gaps and we are starting to see some of the results of these efforts to date. Apprenticeships in the construction and electrical sectors accounted for nearly 60% of all registrations in 2022 and almost all roles in the construction sector are now eligible for employment permits. It will be important to leverage every available source for new skills and new workers for key sectors to maintain the positive recent momentum.”
The BPFI SME Monitor November 2023 can be downloaded here.
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