As the days and weeks go by, more and more businesses are reopening. That’s fantastic news for them, their staff and for the Scottish economy.

But as restrictions lift and that crucial August 9 date nears, the news from offices and shopfloors is of skills shortages starting to bite. Firms across the country are already struggling to hire the people they need, with the situation only set to become more acute in the months ahead.

While that’s the refrain I hear from CBI Scotland members, new research from REC/KPMG shows that the challenge is far more than just anecdotal. According to their UK data, candidate availability during the past quarter declined at its quickest rate since 2017. That’s not just a headache for individual businesses as they compete for people and skills, it also has the potential to put a handbrake on

long-term economic recovery.

We all know that Scotland is never short of changeable weather, but in the case of recruitment, a perfect storm could well be brewing. So, what’s going on?

During the pandemic, many workers from overseas left the UK to return home – hitting the hospitality, logistics, and food processing industries particularly hard.

Meanwhile, Covid has added major uncertainty. Lots of people are understandably wary of changing jobs right now. Others have moved away from sectors that have stayed locked down. And the job retention scheme – an important lifeline for millions of employers and employees alike – has shrunk the talent pool for businesses looking to grow. On top of all this, Scotland’s longstanding skills shortages haven’t gone away.

How do we remedy the situation? The first step is for firms to help themselves. By opening up new routes into business, whether through apprentices or widening access for candidates with technical qualifications, or by investing in innovation and technology.

They also need to recruit from as wide a talent pool as possible. Whether that’s helping disabled colleagues to rejoin the workforce, ensuring true diversity among candidates or simply reaching out to individuals previously overlooked. There is a range of options and, frequently, charities and organisations there to help.

Above all, we know strong employer-employee relations are central to attracting and retaining the best staff and driving the best results. But the Government has an important role to play too. Firstly, businesses would welcome an update to the Shortage Occupation List – reflecting the advice of the Migration Advisory Committee in September last year to include jobs such as butchers, bricklayers and welders.

Firms are also looking for a firm commitment to review the list more frequently, so it remains responsive to labour market demand. That is key to delivering a single UK-wide immigration system that is flexible enough to meet the needs of Scotland – alongside those of all other regions and nations.

But workers from overseas aren’t, and shouldn’t be, our only response to labour shortages. Investing in skills is vital for Scotland’s economic future. It’s not an either/or choice. We must do both to ensure our firms have the access to people they need to succeed. That’s why it’s so important that we align our immigration and skills systems to the needs of business. Doing more to support our domestic workforce and directing them to roles and qualifications we know are in short supply would really help.

While an end to the Covid crisis may finally be on the horizon, we need a laser-like focus on recovery to get Scotland’s economy back on track. Addressing emerging skills shortages feels like the first of many challenges as we seek to right the ship.

By getting Government and business pulling in the same direction, we stand the best chance of weathering the coming storm.

Tracy Black is director of CBI Scotland