The majority of businesses from the Cardiff Capital City Region are reporting that they are experiencing difficulties in recruiting for the fifth quarter in a row.

The latest Quarterly Economic Survey, released by the South and Mid Wales Chambers of Commerce and the West Cheshire and North Wales Chamber of Commerce, shows that 56.9 per cent of businesses from across the Cardiff Capital City Region have struggled to recruit during the first quarter of 2015.

This is against a backdrop of more businesses (up 8.9 percentage points) reporting that they would like to increase their number of employees during the next three months.

Keith Palmer, CEO of the South Wales Chamber of Commerce, said: “It is clearly of paramount importance that the challenges businesses are facing in relation to recruitment are tackled head on. We have long called for the need to upskill the current workforce and invest in skills for the future so that young people are ready to enter the business world when they finish school, college or university.

“There needs to be better partnerships between the public, private and academic sectors, and, given that recruitment challenges are something that businesses have been reporting for more than a year, is something that needs to put at the heart of the political agenda. The skills gap in Wales needs to be urgently addressed.

“There is a great deal more that could be done to support those looking to enter the jobs market to ensure they are work-ready for employers. At the end of last year, we published our Campaign for Welsh Business in which we are calling for a national workplace basic skills programme that all adults can access to help improve numeracy, literacy and language skills, and for a thorough review into workplace skills so that the next generation of Wales’ workforce is equipped with the right skills to support the business community.

“Economic growth cannot suffer in Wales as a result of our workforce not being able to deliver what businesses require. The fact of the matter is that companies will be left with no choice other than to look further afield, to other parts of the UK and the world, to identify the talent they need. This must not continue if Wales is to maintain and build on its economic recovery to date and we are to work towards a truly sustainable Welsh economy.”

The survey, which monitors the performance of businesses across Wales and acts as a barometer for the strength of the Welsh economy, also revealed that the majority of businesses (84.1 per cent) surveyed reported improving or consistent sales in UK markets, although this is a decrease of 2.2 percentage points since the last quarter of 2014, yet more businesses (up 13.5 percentage points) were reporting increased or consistent sales in export markets. Likewise, more businesses (up 12.2 percentage points) were reporting the same or increased orders from export markets in quarter one of 2015.

Mr Palmer said: “It is not hugely surprising that slightly fewer business are reporting a decrease in UK sales, particularly with the uncertainty that an upcoming general election can bring, but it is particularly positive to see that businesses are selling more overseas and that order books are fuller.

“There are many Welsh businesses with excellent products and services and it is vital that they are given the tools to enable them to enter export markets and increase their international footprint. If Wales is able to maximise its export potential then we can really start to become a major player on the global stage, something that will be hugely beneficial to the Welsh economy.”