Businesses fear double dip
Jun 02 2011
Double dip recession is feared
Almost a third of business services firms say their biggest fear for the next 12 months is a double dip recession, research finds.
According to a study by professional staffing recruitment consultancy Barclay Meade, 32 per cent of firms, which include accountancy, legal and marketing, are worried the economy will plunge back into the danger zone.
Barclay Meade director and finance specialist Mark McFall says, ‘The spending cuts were the biggest worry among firms in the business services industry in the previous quarter. However, the government’s austerity drive has now sparked fears of a double dip recession.
‘With this in mind, it is essential that the government ensures sufficient investment and financial support is given to firms to dispel leaders’ fears and allow the sector to grow.’
For the report, Barclay Meade interviewed business services managers and owners about their current recruitment plans and the landscape of their future workforce.
The study also reveals that 32 per cent of firms highlight a shortage of skilled candidates, 38 per cent of firms are hiring at graduate level, up from 29 per cent in Q4 2010, and that middle management is still in demand with 26 per cent recruiting at this level – up two per cent from the previous quarter.
The findings of the tracker are supported by the most recent Recruitment and Employment Confederation and the KPMG Report on Jobs which reveal the number of vacancies rose at their highest rate since April 2010, making March the 18th consecutive month in which there has been an increase.
Furthermore, the number of temporary/contract staff billings increased at the sharpest rate since July 2007.
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