Just over half of West businesses plan to create jobs over the next 12 months, according to a survey that also shows the region as the most confident in the UK for employment security.
Some 88% of firms taking part in the Barclays Job Creation Survey 2013 do not expect to make any job losses this year against a national figure of 79%.
And 52% plan to take on more staff as signs emerge that the economy may be slowly recovering.
However, the survey results contain little comfort for public sector workers who have lost their jobs in the Government’s austerity programme. Some 62% of West businesses say they do not want to hire ex-public sector workers. This figure has stayed fairly constant over the past two years (2012: 56%, 2011: 59%).
More than 700 UK businesses were quizzed in the survey.
Nationally, there are significant differences in hiring intentions between sizes of companies:
- Only 48% of small businesses are creating jobs this year – the least likely out of the companies surveyed (2012: 51%).
- 65% of large businesses are planning to create jobs – fewer than last year (2012: 72%).
- 50% of the largest businesses are planning to hire, a significant reduction in hiring intention, compared to previous years (2012: 70%, 2011: 85%).
- Overall 56% of all companies plan to create new jobs this year, which is little changed from last year (2012: 58%).
Barclays regional head of corporate Martin French said: “Mid-sized businesses have weathered the economic storm far better than expected, and still have room to flourish and grow, which explains their willingness to hire. Comparatively, generating growth can be challenging for the largest businesses, which are unable to be as nimble.
“The survey shows that the UK’s largest companies are the most interested in taking on public sector workers, as they have skills which can be transferred, yet unfortunately they are less likely to be recruiting this year. This continues to leave ex-public sector workers in a challenging position, as the on-going rebalancing of the economy means many have to seek opportunities in the private sector.”
The research also revealed:
- UK businesses are slowly gaining confidence in hiring staff to create business growth than previously, although the majority still remain hesitant with 73% planning to have sales growth lead to job creation as opposed job creation creating sales (2012: 77%).
- Over a quarter (26%) said a reduction in National Insurance would have a major change on the job market. This makes the Chancellor’s recent Budget announcement to waive the first £2000 of employers’ contributions exactly what businesses want.
