Quarterly Economic Survey paints a subdued picture in Shropshire
Wage increases and ongoing changes to employment law continue to be major concerns for Shropshire businesses, according to new research.
The latest Quarterly Economic Survey carried out by Shropshire Chamber of Commerce reveals a relatively subdued local economy as firms adjust to what many describe as a “new normal” trading environment.
Employers report growing nervousness around recruitment due to rising staffing costs and increasing legal obligations – and those who are hiring say the soft skills of applicants often fall short of workplace needs.
Taxation remains the number one concern among Shropshire companies, with many also bracing for a potential rise in inflation.
The survey was conducted shortly before the recent volatility in the Middle East, but after Donald Trump’s announcement on new tariffs.
Four out of five employers who took part in the research said pay settlements and staffing costs were placing pressure on their operations, while more than half highlighted utilities bills as another significant challenge.
Despite this, the survey recorded a notable rise in export sales compared with the previous quarter, alongside a modest increase in the number of firms reporting higher UK sales.
Recruitment intentions also edged upward, although those looking to expand their workforce remain in the minority.
One agricultural business commented: “We cannot afford to take on new staff because National Insurance costs are crippling.” A retailer added: “I will not be employing anyone due to the Employment Rights Act, minimum wage and increased National Insurance.”
Rosie Beswick, project manager at the Chamber for the Marches Local Skills Improvement Plan, said: “The picture remains subdued, despite slight upticks.
“The very moderate positive rises in certain areas show that the impact of the new wage costs has started to settle into a new norm – albeit a rather depressed norm.”
The Quarterly Economic Survey is open to any business of any size in Shropshire or Telford & Wrekin. Participation is anonymous, and Chamber membership is not required.
Shropshire’s results feed into the national British Chambers of Commerce survey, which is used by the Bank of England and other economic bodies to assess business confidence and trading conditions across the UK.
