Firms optimistic on job growth but warn of over-regulation

 
Ben Southwood
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THE JOB recovery is set to continue, as businesses look to hire more workers, though firms voiced concerns about the level of employment regulation in a report from the Confederation of British Industry (CBI) and recruitment consultancy Harvey Nash out today.

Companies are cautiously positive, with 12 per cent on balance reporting an intention to increase hiring of permanent employees over the next six months – that is, 12 per cent more reported positive intentions than responded with negative intentions.

But the report warned that regulation was becoming an increasingly serious problem: 56 per cent of firms thought the UK has become a less attractive place to do business over the last five years, and 67 per cent believe that regulation is a threat to UK competitiveness.

“Seventy per cent of our employment regulations have been introduced since 1997,” said CBI chief policy director Katja Hall.

“To boost firms’ appetite for hiring this burden must be reduced,” she went on to warn policymakers.