SFA JOBS SENTIMENT SURVEY REVEALS
- 20% of small firms expect to recruit permanent staff in the next three months
- 58% expect employee numbers to remain at current levels
- 26% of firms will increase employee numbers in 2012
- 69% expect pay bill to remain at current levels in 2012
The Small Firms Association (SFA) has released the findings of its Q3 2011 Jobs Sentiment Survey. Commenting on the figures, SFA Director, Patricia Callan stated, “The overall survey results show that the pace of job losses within small businesses has slowed and there is a positive outlook with 1 in 5 recruiting permanent staff in the next three months, however, the forecast for job creation remains weak.”
“Our ability to create jobs has been severely damaged by a loss of competitiveness and the lack of jobs is one of the biggest issues facing the economy. The key priority is to create an economic environment that is conducive to small business growth and that restores consumer and business confidence where job losses can be stabilised and jobs can be preserved and created,” Callan said.
Action the Government can take to assist small firms:
- Restore Confidence – unlock the savings and get people to spend by communicating the four year fiscal adjustments which will provide certainty.
- Rebalance austerity programme with growth plan – reach target of €3.6bn reduction through expenditure cuts and not tax increases.
- Urgent introduction of SME Credit Guarantee Scheme
- Action to tackle our excessive cost-base
The survey was conducted during September and a total of 649 companies employing 13,384 people responded. The sample was drawn from manufacturing, distribution, retail and services sectors and from a regionally representative sample.
The results show that retaining jobs still remains a challenge for small firms, however one in five companies plan to recruit permanent positions over the next three months and 18% of small firms will recruit temporary staff during the same period. 58% of companies indicated that employee numbers will remain at current levels during the next three months, while 18% of companies expect a decrease in employee numbers in the same period.
The Q3 2011 survey shows a stabilisation in short time working being introduced in firms when compared to 12 months ago. Over the next 3 months, one in ten companies expect to introduce short term working arrangements and this is broadly in line with last year (9%). Just 3% expect to implement compulsory redundancies before year end, a decrease of 10% on this time two years ago.
Many firms are taking further workplace actions to ensure jobs are retained, 50% of firms expect new products and services to be developed over the next three months and 48% expect process improvement over the same period.
Callan said, “The survey shows that the rate of job losses and reduction in employee hours has slowed. This is a reflection of the series of actions which have been taken by many small firms to try and reduce costs and retain jobs, however, we cannot become complacent, many jobs are still at risk.”
Looking ahead to 2012, the figures would appear to be more optimistic with 26% of companies expecting employee numbers to increase and 58% expecting employee numbers to stay at their current level. In regards to pay, half of respondents (50%) expect their total pay bill to remain at its current level in 2012, while 13% of small firms expect their pay bill to decrease. “This shows that the focus on costs will remain a key priority in 2012,” said Callan.
For further information please contact:
Patricia Callan,
Director,
Small Firms Association.
Tel: 01-6051602,
Mob: 087-6999345,
e-mail: patricia.callan@sfa.ie
