News

September 23, 2011

Small firms need to create jobs now, says FSB

Small firms need to start recruiting again if unemployment figures are to reduce – that’s the message from the Federation of Small Businesses (FSB), after new figures revealed that women and young people make up the bulk of those out of work at present.

Figures from the Office for National Statistics found that unemployment increased by 80,000 in the three months to the end of July this year – to a total of 2.51 million. This is the largest quarterly rise since August 2009.

Young people and women have been among the hardest hit, the figures found, with the number of those seeking work rising to 769,000 and 1.06 million respectively. FSB spokesman Andrew Cave said that small firms have historically been more likely to recruit from these two groups than big business.

“In times of economic hardship, when firms lay off employees, these two groups are often the hardest hit,” he said.

Confederation of British Industry director for employment policy Neil Carberry agreed: “With one in five 16-24-year-olds currently unemployed, tackling youth unemployment must be a priority.

“Businesses are eager to play their part through apprenticeships, training and work placements, but now the Government must do all it can to create the right conditions for the private sector to create even more employment opportunities,” he said.

Cave added that the Government must do more now to encourage small firms to recruit. “They should extend the National Insurance Contributions holiday for new businesses to existing small firms,” he said.

• Businesses struggling to find skilled recruits