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Small firm operators remain concerned that the chronic tight labour market will hit their growth plans, a new survey by the Banking and Payments Federation of Ireland (BPFI) shows.
Recruitment issues and rising business costs amid an inflationary and high interest rate environment continue to put pressure on small firms despite Ireland’s “buoyant” economy, said the banking sector representative group.
Small and medium-sized businesses employ the majority of people in Ireland but with unemployment reaching record low levels this year there is not much room to grow.
The SME Monitor by the BPFI warned that small and medium-sized construction firms are particularly vulnerable to recruitment issues and suggested there should be increased focus on apprenticeships.
“Apprenticeships in the construction and electrical sectors accounted for nearly 60% of all registrations in 2022 and almost all roles in the construction sector are now eligible for employment permits,” said BPFI chief executive Brian Hayes.
The lack of available staff has caused some businesses to shutter for good, though.
This week, Hollie Joyce made the decision to close her cafe in Mayo, called Cakes By Hollie, due to “staff shortages and rising costs that are out of my control”.
“It’s absolutely devastating to close due to not being able to get staff which was our biggest issue,” said Ms Joyce.
“From talking to other suppliers and business owners it’s only going to get worse, unfortunately.”
Employment reached its highest levels on record earlier this year at over 2.6m which led to an increase in income tax receipts of 8.2% year on year to €23bn in the year to date.
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