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Scottish firms are struggling to recruit skilled staff and this is holding back growth and expansion, according to a report published today.

An employment and skills study from Lloyds Banking Group reveals that more than two-fifths of Scottish firms are reporting difficulty finding skilled staff.

The report said that the skills shortage is proving to be an issue for businesses in Scotland, with 34% saying it had impacted their activity. Half said it affected their revenue growth and business expansion, and 45% said it had made it harder to respond to customer needs.

To help generate a pipeline of future talent, 47% of Scottish firms said they would be focusing on improving skill-sets in the next 18 months as part of their recruitment efforts.

More than half of companies said they are already engaged with local schools, colleges and universities, and 53% of firms want to work with more education providers. Despite this appetite for working with the education sector, 21% said that they don’t have enough time or staff resource to engage with more schools.

Published during during Scottish Apprenticeship Week, the study found that apprenticeships are providing to be a popular solution to the skills shortage. Almost a third of Scottish companies surveyed employ apprentices and, of those, 43% say they plan to hire more over the next couple of years.

Philip Grant, Lloyds Banking Group’s ambassador for Scotland, said: “Having the right access to skills is vital for any business to grow, and being able to hire and retain talented people should be at the top of the agenda for firms across Scotland.

“We’re committed to nurturing young talent as part of our Helping Britain Prosper plan and, in Scotland, we employ apprentices across our business and work in partnership with local schools, colleges and universities.”