Job cuts more severe in small businesses
Oct 15 2009
Small businesses are looking to lay off more staff
Small businesses have made bigger staff cuts over the last year than their larger corporate counterparts and are most likely to downsize in 2010.
Among companies that have made redundancies, staff levels on average have been slashed by 27 per cent in small businesses, 20 per cent in medium-sized companies and 10 per cent in larger firms, according to a report by talent development company Morgan Redwood.
Of those businesses predicting cuts next year, small businesses expect to reduce their headcounts by 27 per cent, with 20 per cent in medium-sized companies and 10 per cent in larger firms.
David Kern, chief economist at the British Chambers of Commerce, says: ‘Although confidence is strengthening, businesses are still facing serious pressures, particularly small and medium-sized firms. Lending is still too weak, and many are struggling to retain their skills base.’
Figures released this week from the Office for National Statistics show that unemployment has hit 2.47 million, with 7.9 per cent of the population now out of work.
However, Trades Union Congress general secretary Brendan Barber said the figures gave some cause for hope as they showed a slow down in the rate of unemployment increases.
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