Gloom for ex-pub­lic sec­tor staff

The Herald Business - - Newsdigest -

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

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