Labour accuses ministers of ‘suffocating’ businesses amid recruitment concerns

Scottish Labour has said businesses are being “suffocated” by the Scottish Government as figures show significant recruitment worries from employers.

The latest Business Insights and Conditions Survey for Scotland showed between 40-50% of employers experienced difficulties recruiting employees every month in the last year.

According to the data, 40.5% of all businesses surveyed reported recruitment concerns between May 2-14, while figures in accommodation and food services (48.8%) and construction (50.4%) were significantly higher.

The latest figures are an improvement from 2022 where concerns between May 16-29 were 45.5% for all business and 64.7% for accommodation and 44.7% for construction.

Recruitment worries peaked in September and October, with 48% of businesses surveyed struggling to hire staff.

Scottish Labour’s economy spokesman Daniel Johnson has blamed the struggles on Scottish Government’s “incompetence”, as he urged ministers to take action on resetting the relationship with businesses.

He said: “Once again the SNP-Green Government’s incompetence is holding back Scotland’s economy.

“The Scottish Government talk of ‘resetting’ relations with business, but businesses are still crying out for a highly skilled, flexible workforce equipped for the jobs of the future.

“Scotland’s economic potential is being squandered and growth is being suffocated by this SNP-Green Government failure on skills – and we are all paying the price.

“To seize the opportunities of our transition to a net-zero economy and the technological revolution we need a skills system fit for the future.”

A spokesman for Neil Gray, the Wellbeing Economy, Fair Work and Energy Secretary, said: “Labour has a cheek to talk about skills shortages when they are wedded to the same hard Brexit future as the Tories.

“Ending freedom of movement has been disastrous for Scotland and for our employers. With Keir Starmer’s Labour Party pursuing the same policies as the Tories, it is clear Scotland’s economy will continue to be held back by Westminster while our independent neighbours thrive.

“That’s why we need the full powers of independence, so Scotland can reach its economic potential.”