Gloom for ex-public sector staff
EMPLOYERS who were asked this month if they anticipated an increase in recruiting expublic sector employees over the next 12 months said no, according to the latest Mid-Size Business Confidence Monitor by CIMA (Chartered Institute of Management Accountants), released last week.
CIMA said 74% of employers replied in the negative while only 11% said they would expect to employ more ex- public sector workers during the next 12 months, which could prove worrying for the many public sector employees facing redundancy.
The trend continues with 59% saying they anticipate no rise in recruitment levels during the first quarter of this year.
When asked to what extent the VAT rise would have on their business and overall performance, 61% said they predicted little change over the next quarter, with a further 33% saying the rise will have a negative impact on their sales.
This is a sharp turnaround from January 2010 when as many as 59% of mid-size businesses predicted that a 20% VAT rate would negatively impact on their business. Midsize businesses are also experiencing difficulty in accessing funds from banks. When securing additional finance, 49% of businesses said access to cash was difficult, compared to 34% in quarter three.
Ray Perry, executive director, CIMA said: “Going into 2011 mid-size businesses predict no change to recruitment levels with over half saying they do not plan to increase the number of fulltime employees. This may be a concern for many public sector workers who are facing redundancy and hoping to find jobs in the private sector.”
A return to damaged premises is avoidable if precautions are taken against freezing weather