Employers quizzed by the Federation of Small Businesses said they were becoming increasingly frustrated at the lack of reading, writing and arithmetic abilities of would-be recruits.
More than 40 per cent of the thousands of companies quizzed for the FSB's Lifting the Barriers to Growth survey said communication and technical skills were also in short supply.
Education
Regional policy manager, Paul Henly, said the findings show employers and education and training bodies need to work closer together.
He said: "It is only reasonable for employers to expect school leavers and graduates to be able to read, write and add up, but unfortunately this is increasingly not the case."
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