Rolled-up banknotes in several currencies

Shortage of language skills

A shortage of language skills has been identified as a barrier to trade. A recent British Chambers of Commerce survey shows that 70% of businesses have no foreign language abilities in the markets they serve. With the second-biggest UK export market being Germany, insufficient German language skills would hold back any company trying to conduct business in that country. The same goes for other German-speaking countries in Europe.

Addressing the problem

Addressing gaps in business skills, including language skills, should be a priority for many businesses. The economic cost of language ignorance, in terms of communication and awareness of cultural barriers, has been put at up to £48bn, or 3.5% of national income.

A better understanding of language and culture enables businesses to identify and exploit sales opportunities in overseas markets.

The cost to businesses

A British Council report identified the languages most important for the UK’s future prosperity. The report pointed out that leaving the EU had made language skills more important.

Recent Aston Business School research found that SMEs making use of languages had 30% better success in exporting and that languages helped the internationalisation of UK SMEs, which employ 61% of the total UK workforce.

Benefits for foreign language speakers

Language skills also help increase employment opportunities and social mobility. A recent Confederation of British Industry (CBI) survey noted that learning foreign languages expands the horizon of young people. The survey endorsed the inclusion of a foreign language in the English Baccalaureate.

The solution

Languages matter for the UK’s future, but the supply of language skills has been falling for years. In education and the workplace, the UK has depended heavily on the skills of EU nationals. They remain important, and there is now an opportunity to build the language skills of UK citizens.

Where does your business stand? Does it have adequate foreign language skills?

Enquire about German language training!