Gloomy news on jobs?
10 May 2013
A worrying suggestion in a member survey carried out by The Forum of Private Business is that “gloomy news for employment figures over the summer could well stagnate into 2014”.
Well, the FSB’s survey suggests the Employment Allowance (which was announced in the Budget and received positively by small businesses) has had the unintended effect of "persuading many firms to hold back on recruitment until after next April when the new measures take effect and NI costs drop”.
It’s not just that, of course, many companies are also waiting to see if profitability rises before hiring more people.
29% said it was crucial that employment costs came down before recruitment would be considered and 25% said it was crucial that profitability rose.
On the up side, in excess of 70% of those surveyed had a more positive outlook on the economy and recruitment.