BUSINESS leaders have expressed major concerns over the state of the Island’s economy, saying government strategy and workforce pressures are among the factors holding back investment and growth.
Data from a Leadership Lens survey carried out by the Institute of Directors and Chamber of Commerce paints a pessimistic picture, with confidence in the economy described as “weak”.
More than half of respondents said they considered economic conditions to be a barrier to growth, while a similar proportion expressed anxiety about government strategy and industry support.
Other concerns related to the high cost of living putting significant pressure on businesses (cited by 40% of respondents) and the growing challenges caused by labour costs and skills shortages (36%).
“Jersey’s business community is sending a clear message – economic uncertainty, government strategy and workforce pressures are holding back investment and growth,” said IoD chair Alex Ruddy. “Our Island needs targeted action to restore business confidence.”
Murray Norton, chief executive of Jersey Chamber of Commerce, said: “Jersey’s business community remains resilient despite economic pressures, but confidence is fragile. High living costs, labour expenses and skills shortages strain businesses and need addressing.
“With over half of those surveyed citing government strategy and economic conditions as barriers to growth, this highlights the Chamber and IoD’s call for stronger collaboration between policymakers and industry.”
Mr Norton said there were some bright spots from the survey, with some businesses – particularly in financial services, information and communication, and professional services – expecting stability or modest growth, underpinned by a skilled and experienced workforce, proximity to crucial markets and digital capabilities.
“With the right support, Jersey has the potential for renewed confidence and stability,” he added.
Many of the issues raised are set to be raised at a forthcoming debate on Jersey’s economic future. The event will take place on 24 April, to be chaired by journalist Natasha Kaplinsky, and was described by Ms Ruddy as “a critical opportunity to bring together business leaders, policymakers, and industry bodies to address these concerns together”.
She added: “We need to ensure Jersey remains a competitive and attractive place to do business.”
