More Jobs To Be Cut

As Britain awaits the Governments ‘austerity’ spending review, it has been announced that one in 10 small businesses is going to have to make drastic cut backs over the next few months.

The news is outlined further in a report by the company that carried out the research, The Federation of Small Businesses which comments on the cautious nature of both the employment sector and the economy. Charles Davis, managing director comments in the article for Economist’s View,

“Reflecting these risks, businesses expect sales to weaken in the coming three months and employment to decline.”

He adds, “This suggests the private sector remains cautious about ‘putting their money where their mouth is’, as overall economic growth is expected to slow.”

Davis is commenting on the fact that far from being able to develop businesses by employing young, fresh talent, entrepreneurs are going to have to make cut backs and let go of employees as they struggle with the uphill financial battle.

The groundbreaking research estimates that as many as 600,000 jobs could disappear over the coming years from the public sector which leaves many people seeking refuge in the private jobs sector which currently employs one in five Britons.

However the research shows that far from picking up the cut-backs from the public sector, private sector businesses cannot employ new recruits either and are having to make serious cut backs as well. Small firms commented that they were cautious about the strength of the recovery and over a double dip recession.

John Walker, of the Federation of Small Businesses commented ‘The Government is looking to the private sector to create jobs and take on the people who will be made redundant as a result of the cuts. Evidence from this report shows that small firms do not have the confidence to do that yet.’

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