Almost a third of Britain's SMEs intend to recruit new staff in 2014.
Posted: 10th January 2014
According to a survey by Clydesdale and Yorkshire Banks, almost a third of Britain's SMEs intend to recruit new staff in 2014.
Employers actively recruiting are expected to increase their workforce by 9% on average, reports the survey, which could equate to more than 417,000 new jobs being created.
Nearly a quarter (24%) of SMEs questioned said they would spend additional money on new staff over the next year. The survey also shows that small businesses (10-49 employees) are the most likely to grow staff numbers, with 63% of firms in this category saying they plan to create jobs compared with 36% of medium-sized businesses (50-249 employees).
Some sectors are set to benefit more than others from the jobs boom, with more than half of professional services and accounting firms (53%) and more than half of manufacturing SMEs (51%) polled citing plans to create jobs. Recruitment intention was lowest among wholesale and retail traders, with just 9% of those questioned planning to hire new staff.
The research also highlighted considerable regional variation. Job prospects are especially bright in the North East where 64% of SMEs intend to hire more staff. Recruitment is also set to be strong in London, where 46% of SMEs signalled plans to increase staff numbers, with the Midlands (44%) and Scotland (43%) following closely behind.
While the majority of businesses (58%) surveyed do not intend to create new jobs, 2% said they would cut staff numbers, suggesting that the economic squeeze on UK businesses is loosening its grip.
Indeed, the research points to growing confidence among the UK business community. More than half of SMEs (56%) questioned said that the UK economy offers good long-term prospects for business growth, and 97% of respondents plan to invest in growing their business over the next year.
Paul Shephard, director for business and private banking with Clydesdale and Yorkshire Banks, said: "As the UK economic outlook continues to improve, we are starting to see a positive impact on recruitment plans. Increasing staff numbers can help businesses to boost productivity and competitiveness, and allow expansion into new markets as capacity grows. Creating new jobs is also good for the economy as a whole.
"While our research suggests that many businesses are becoming more confident about investing in their future, it is important that we recognise there remain considerable challenges to growth. SMEs are crucial to the UK economy and its emerging recovery and we will continue to support them in 2014."