Small firms remain reluctant to hire

The rate of job losses among small businesses in the Republic has slowed but the prospects for job creation remain weak, a survey…

The rate of job losses among small businesses in the Republic has slowed but the prospects for job creation remain weak, a survey the Small Firms Association (SFA) has found.

The survey found 60 per cent of companies indicated that employee numbers had been maintained at current levels during the last three months.

Some 29 per cent of companies had experienced a decrease in employee numbers in the same period while just 24 per cent of companies expect a further decrease in the next 3 months.

A total of 622 companies employing 13,750 people across the manufacturing, distribution, retail and services sectors responded to the survey.

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The survey found 50 per cent of small businesses will freeze recruitment in the

next three months, 14 per cent will implement short-time working, and some 37 per cent will train and upskill staff.

The results show that retaining jobs and creating employment will remain a challenge for small firms in the coming months, the report said.

Commenting on the figures, SFA director Avine McNally said: “The overall survey results show that the pace of job losses within small businesses has slowed and the prospects for job creation remains weak.”

"This is a reflection of the series of actions which have been taken by many small firms to try and reduce costs and regain cost competitiveness; however, we cannot become complacent, many jobs are still at risk,” she said.