The sensitivity of the bubble tube is given as 40" per division. The total error is:
\[
\text{Total error} = 40" \times 2 = 80"
\]
Convert angle in seconds to mm:
\[
1" = \frac{1}{3600} \, \text{degree}, \text{Error in length} = 60 \times \tan(80")
\]
Approximation:
\[
\tan(80") \approx 0.02332
\]
Thus, error in length:
\[
\text{Error} = 60 \times 0.02332 \approx 1.4 \, \text{mm}
\]
Thus, the error in staff reading is \( \boxed{1.4} \, \text{mm} \).