The demand for new staff will fall by 21 per cent this year, a survey published today claims.
The Small Firms Association (SFA) survey says there has been a dramatic decline in companies seeking to recruit, with just 43 per cent of respondents having vacancies, down from 63 per cent in 2001.
Forty-two per cent of companies in the 8th Annual SFA Employment Survey said unrealistic salary expectations was the reason they were reducing the number of people being hired.
SFA Director Mr Pat Delaney today said the results showed that, under current conditions, the ability of the economy to create new jobs is declining rapidly.
"For the third successive year small companies create less new jobs than the previous year. While they will create 36,238 new jobs in 2002 the corresponding figure in 2001 was 45,942 and 64,201 in 2000.
"The survey shows that the labour market is now less rigid but those companies who are prepared to create jobs are being hindered by lack of skills and unrealistic wage expectations. If we do not increase our skill levels and moderate our wage expectations we are writing our own epitaph," he said.
The survey also showed that 46 per cent of companies had recruited non-national staff who were based in Ireland and a further 12 per cent had brought in staff from abroad. Satisfaction with the issuing of work permits has declined from 91 per cent in 2000 to 39 per cent in 2002.
