More than 90 per cent of small businesses are experiencing serious recruitment difficulties, according to an employment survey carried out by the Small Firms Association (SFA). It says these problems are the result of a combination of labour shortages, skills gaps and competition from other employers.

The survey shows that 81 per cent of companies have had to increase pay rates beyond previous levels to attract new recruits. Competition from other employers is seen as the greatest factor influencing both labour shortages and staff turnover.