The Small Firms Association (SFA) has released the findings of its Q2 2010 Jobs Sentiment Survey.
Commenting on the figures, SFA Director, Avine McNally stated, “The overall survey results show that the pace of job losses within small businesses has slowed and the prospects for job creation remains weak.”
A total of 622 companies employing 13,750 people responded to the survey. The sample was drawn from manufacturing, distribution, retail and services sectors and from a regionally representative sample, with all parts of the Irish Republic included.
The results show that retaining jobs and creating employment will remain a challenge for small firms in the coming months. While 60% of companies indicated that employee numbers have been maintained at current levels during the last three months, 29% of companies had experienced a decrease in employee numbers in the same period. Just under a quarter (24%) of companies expect a further decrease in the next 3 months.
The Q2 2010 survey shows a decline in the number of firms placing employees on lay off or short time working over the next 3 months, with 14% of companies indicating the introduction of short-time working (a decrease of 1% on Q1 2010) and 7% implementing lay-offs (a decrease of 4% on Q1 2010).
McNally said, “The survey shows that the rate of job losses and reduction in employee hours has slowed. 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.”
50% of small firms will implement a recruitment freeze in the next three months (an increase on 3% from Q1) and 24% of firms will not extend any current employment contracts; this figure remains unchanged since the end of 2009. “These figures are quite worrying as it shows the outlook for job creation remains weak. The reluctance to recruit is based on a number of issues, mainly economic and financial uncertainty.” added McNally.
Looking ahead to 2011, the figures would appear to be more positive with three out of five companies expecting employee numbers to stay at their current level and 19% of firms expecting to increase their employee numbers.
In regard to training, 37% of survey respondents indicated that in the next 3 months they will be training and upskilling staff. “This is a positive sign as small firms are again recognising the importance of training and
are willing to investment in this critical area. By ensuring that all staff have the necessary skills to assist them in developing innovative new products and processes, as well as sales techniques, will assist them to trade out of this recession, become more innovative and sustainable,” said McNally.
“Our ability to create jobs has been severely damaged by a loss to competitiveness and it will continue to be a problem until this issue is addressed. It is vital that the Government prioritise the restoration of cost competitiveness to the small business sector; generate confidence in the economy and create the enterprise environment where job losses can be stabilised and jobs can be preserved and created,” McNally said.
