Firms plan to employ more but fear rise in staffing costs

ALMOST two in three small firms are looking to employ more staff over the next year as the economy picks up, a poll has shown.

Building firms, the services sector, then distribution, wholesale and retail are looking to recruit, the Small Firms Association said.

Firms with between 21 and 30 workers are the most likely to take on more staff, the survey showed.

SFA director Patricia Callan said: ‘The recovery continues to gather pace, with small businesses in all sectors and parts of the country planning to increase the number of people they employ.’

There were 206,500 on the dole last month, down 32,200 on last year, official figures showed.

But she warned the Government that initiatives that may increase the cost of employment to small businesses could mean a rethink of recruitment plans.

Ms Callan said: ‘Recent announcements by Government relating to a potential increase in the national minimum wage by 50 cents, mandatory pension provision, living wage... may jeopardise these plans. The Government must recognise that supporting and enabling small firms to create jobs should become their No.1 priority.’