02/02/2009 - Small firms making fastest job cuts
Research shows that as a result of the economic downturn, small businesses are making redundancies at the fastest rate in almost 20 years.
According to employment organisation CBI, a rapid fall in new orders and output among manufacturers in the three months to January - its fastest decline since the 1990s - has led to an increase in laid off staff.
A poll of 500 small and medium sized firms (SMEs) found that they were expecting the trading conditions in the first quarter of 2009 to be even tougher.
Russel Griggs, chairman of the CBI's SME council, said: "The jobs picture among smaller manufacturers has deteriorated markedly since last July in the face of rapidly declining demand for UK-made goods at home and abroad.
"Firms are steeling themselves for a very difficult few months, with output and orders expected to fall at a record pace in the next quarter. As a result, job losses are expected to accelerate among SMEs."
Just 7% of the firms questioned expanded their workforce during the past quarter, while 38% made job cuts.
Copyright © Press Association 2009
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