Half of businesses considering redundancies, according to BCC survey

The latest British Chambers of Commerce (BCC) Monthly Business Survey, published today, reveals the continued threat to the UK labour market, with one in two firms considering or certain to make redundancies over the next 6 months.

The results from 450 companies across the UK also confirm that demand remains low, with not a single business reporting that they will increase stock holdings over the next three months.

The key findings from the survey include:

• 51% of companies are considering or certain to make redundancies over the coming 6 months.
• None of the businesses surveyed plan to increase stock holdings. 83% will maintain stock at their current levels, while 17% will decrease stock in the next 3 months.
• 1 in 5 businesses see growth returning to the UK economy by the end of 2009, while 1 in 2 are more uncertain and do not see growth returning until the first half of 2010.

Commenting, Adam Marshall, Director of Policy at the British Chambers of Commerce, 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.”

Ends

Media Contact:

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

Full survey results:

The size break down of firms is as follows:

0-9 Employees: 35% of respondents
10-49 Employees: 33.9% of respondents
50-99 Employees: 12.5% of respondents
100-249 Employees: 5.5% of respondents
250-499 Employees: 5.0% of respondents
500+ Employees: 8.2% of respondents

Q1 – Affected by swine flu

Businesses were asked if they had been affected by swine flu:

16.3% stated that they had
83.7% stated that they hadn’t

Q2 – Swine flu contingency plan        

Businesses were asked if they had put a contingency plan in place to deal with swine flu should it worsen:

48.4% stated that they had a contingency plan
51.6% stated that they had no contingency plan

Q3 – Swine flu economic recovery

Businesses were asked if they thought swine flu would harm the UK’s economic recovery:

35% stated that they thought it would

Q4 – Employee benefits
 
Respondents were asked to select from a list the benefits that they had withdrawn or downgraded in response to the recession (multiple answers could be given on this question):

4.3% stated that they would downgrade/withdraw pension
24.9% stated that they would downgrade/withdraw bonuses
0.2 % stated that they would downgrade/withdraw childcare vouchers
2.5% stated that they would downgrade/withdraw facilities such as canteen or transport
5.9% stated that they would downgrade/withdraw other benefits

Q5 – Stock holdings

Respondents were asked about their intentions for stock holdings over the next three months: 

0% stated that they would increase their stock holdings
83.4% stated that their stock levels would be maintained
16.6% stated that their stock levels would be reduced

Q6 – UK economy return to growth

Businesses were asked which future quarter they expected the UK economy to return to growth:

8.9% stated July to September 2009
12.7% stated October to December 2009
21.1% stated January to March 2010
31.8% stated April to June 2010
25.5% stated later than above time periods

Q7 – Recruiting 16-24 year olds

Businesses were asked if they had recruited a fulltime employee between the ages of 16 and 24 over the last 12 months:

46.4% stated yes
53.6% stated no

Q8 – Redundancies

Businesses were asked about their approach to redundancies:

10.2% stated that redundancies were certain over the next six months
41.1% stated that redundancies will be considered over the next six months
48.7% stated that redundancies were not an option over the next six months

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.