Underfunded SMEs not hiring

Sarah Davidson

October 8, 2012

As the Conservative party conference convened in Birmingham today David Morel, director of Tiger Recruitment, called on the government to offer SMEs a reprieve until the market returns to normality.

He said: “Over the past 12 months, the recruitment market has suffered as a result of a lack of confidence among employers, small businesses feel exposed and underfunded.

“The Euro crisis is by a distance the single biggest contributory factor. Too many businesses are too scared to take on full-time staff.”

The call comes as global recruitment firm Michael Page International issued poorer than expected results.

Its 2012 quarter three gross profits of £126.5m are 8.3% lower than the previous quarter and 11.3% down on the same quarter last year.

Morel added: “The permanent jobs market was pummelled over the summer, specifically by the Olympics. Both businesses and applicants went off the radar however things have picked up since mid-September but the permanent jobs market is still very much on the back foot.

“In the UK, we expect to see a slow, gradual pick-up in the wider recruitment market in the months ahead but expect progress to be volatile.”

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