Over Half Of All Small Businesses To Freeze Recruitment For 2017

One in five UK employers say that the UK’s decision to leave the EU means they will hire fewer people in the coming 12 months

Over Half Of All Small Businesses To Freeze Recruitment For 2017

51.2% of all UK small businesses have no plans to recruit new staff in 2017, according to a report by Close Brothers.

The survey of 900 small enterprises revealed that 22.9% will turn to freelance workers or temp staff instead of taking on full time employees, with 58.6% worried about the current cost of recruitment given the uncertain economic environment.

When asked about their reasoning behind hiring fewer staff, Brexit was seen as major factor by many – with 19.2% hiring fewer new workers in the light of the UK’s decision to leave the EU.

Worryingly still, 45.6% of respondents admitted to actually letting staff go in the past 12 months, with just 10.4% saying Brexit prompted an increase in hiring.

David Thomson, of Close Brothers Invoice Finance, said:

“While the UK’s economic performance during the second half of 2016 was strong compared to other leading economies, many small business worry that this may prove not to be sustainable. They are reluctant to take the risk of hiring new staff because they are not convinced revenue growth will justify the extra expense of additional employees.

“Until we know more about what the UK’s withdrawal from the EU will mean in practice, many small businesses will continue to think twice before taking on new staff. They just don’t know yet whether there will be sufficient work for new employees and having been forced to make workers redundant in recent times, they’re opting to take a wait-and-see approach to hiring.”

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