A survey of 6,000 businesses by the employers' organisation revealed that 43 per cent of firms experienced difficulties in finding staff with the right abilities last year, compared with 29 per cent in 1994.
The BCC blamed the rise on the UK's education system which it claimed meant young people leave school without sufficient skills for the workplace.
Speaking at a conference in London, David Frost, BCC director general, said: "Employers tell us all the time that they are frustrated that young people are not equipped with the right skills for the workplace.
"The system is simply not providing potential employees with the right skills for business and our figures show it has been failing for many years. The skills of our workforce are already lagging behind many of our global competitors.
"The government must implement lasting reform in its proposals next week or our competitive edge could be seriously harmed. Businesses cannot wait any longer."
The government is due to unveil a white paper on education for children aged 14-19 years old next week, which is expected to include reforms of the secondary school curriculum and examinations.
The white paper will represent ministers' response to last year's report by Mike Tomlinson, former chief inspector of schools, who proposed a new four-stage diploma to replace A-levels and GCSEs.