Half of firms considering redundancies

Friday 7th August 2009

One in two firms are certain to or considering making redundancies over the next six months.

Figures today from the British Chambers of Commerce (BCC) monthly business survey reveal there is a continued threat to the UK labour market.

The survey of 450 companies across the UK confirmed demand was low, with not a single business reporting they will increase stock holdings over the next three months.

Some 51 per cent of the companies surveyed are considering or definitely will make redundancies, with one in five businesses seeing growth returning to the UK economy by the end of 2009, and one in two are more uncertain and do not see growth returning until the first half of 2010.

Adam Marshall, director of policy at the BCC, said: "With half of firms still thinking about cutting their workforce by the end of the year, the government must continue to promote measures that stimulate growth in investment and jobs.

"It will be business that drives an economic recovery, boosting employment along the way. Policies to help businesses retain jobs, and increase employment, will be critical over the next 12 months. Scrapping plans to raise National Insurance contributions in 2011 is an obvious place to start."

There are currently 2.38 million people unemployed in the UK. ADNFCR-1783-ID-19300601-ADNFCR

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