Large firms plan on jobs expansion

Julian Harris
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BIG companies are more likely to offer new job opportunities than their smaller counterparts, according to research by Barclays Corporate, released yesterday.

Firms with turnover in excess of £500m were the most positive, with 85 per cent looking to create new full time positions this year.

However, less than half (41 per cent) of businesses with income under £5m expect to provide new jobs – and many of these will only be part time.

Many companies insist that sales must grow before they can create new employment opportunities, the survey of 500 executives found.

Around three quarters of executives put sales growth before job creation – compared to before the recession, when only half (52 per cent) considered sales growth more important.

New job creation is dependent on sales increasing first, 78 per cent of respondents said.

“Job creation is vital for a sustainable economic recovery, and while these survey results are encouraging, they also highlight that many businesses remain risk adverse when it comes to creating new positions in order to drive growth,” said Barclays Corporate’s Kevin Wall.

More than eight of out ten (82 per cent) new jobs will be at junior, middle management or skilled labour, the survey said.

Meanwhile, the City is seeing a strong return to confidence, yet worries persists over increased regulation and taxes, according to a small survey by consultants Smith and Williamson, also released yesterday.

Four out of five respondents expect business prospects to improve or stabilise -- yet two thirds believe regulation will restrict their businesses, its survey found.