A HEREFORDSHIRE business group has warned that the serious recruitment struggles facing local firms could be dangerous for the local economy.

Latest labour market figures from the Office for National Statistics, coupled with news of inflation topping 10 per cent, show the availability of skilled staff remains low.

The British Chambers of Commerce has lobbied Government, calling for urgent review and reform of the shortage occupations list to include more jobs at all skill levels.

The hospitality industry has been hit particularly hard, with it facing a 7.9 per cent vacancy rate, the highest of any industry, according to the ONS.

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Commenting on the latest ONS figures, Herefordshire and Worcestershire Chamber of Commerce director of business development and engagement Robert Elliot said: "Businesses across Herefordshire have experienced unprecedented times for a number of years now.

"Covid presented business conditions unseen since wartime and as we emerged from the pandemic our markets were hit with extraordinary demand and a restricted supply chain.

"Businesses are striving to retain staff who may now be looking for better paid jobs.

"Add in the extreme weather conditions experienced recently, particularly in food and drink, and it is no surprise businesses are challenged."

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Mr Elliot added that Government action needs to follow to help struggling businesses.

He said: “Businesses will be looking for a reaction to the latest figures, some indication that government is listening and understanding the challenges.  

"This action could take many forms but reducing costs to business whilst easing burden on consumers is a minimum.”

Director of policy and public affairs at the British Chambers of Commerce, Alex Veitch, said: "The rise in inflation to 10.1 per cent is the tenth monthly increase in a row and is another record high.

"This, alongside eye-watering energy prices, confirms the severity of the crisis.

"Businesses want to support their people, they want to invest and grow, and they don’t want to put prices up for their customers, but they are being left with little choice.

"The two immediate and impactful choices would be to review and reform the shortage occupations list to help fill the vacancies and bring businesses’ energy costs down by lowering VAT to five per cent.

"It’s time for action and we’re offering solutions. It’s time for Government to listen."