Firms intend to recruit fewer new employees and work their current staff harder in 2011, says a Bank of England report.
The research, conducted by the Bank of England's UK agencies, asked 370 companies about their plans for the year ahead.
Here are some of the findings as quoted on the Daily Telegraph website:
- Most businesses plan to raise output by 5 per cent using only their existing workforce
- Fewer than 10 per cent of firms said they did not have the capacity to increase output using current staff levels
This trend could lead to a rise in the number of cases of employment law cases as companies put the challenge of dealing with upward pressures onto staff. Workers will as a result face increased workload, more work-related stress and job-loss fears.
The Bank of England report also focused on specific industries, highlighting key trends including:
- 84 per cent of firms are set to pass on the full VAT rise to consumers
- Companies in the construction industry are tendering for work that would usually be left for smaller firms, leading to "industrial concentration"
- Bank credit remained hard to get for small business, but was more or less "back to normal" for large businesses
Firms plan to work staff harder (Daily Telegraph)
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