Small factories hiring at fastest rate in decades
THE UK’S small factories hired at the fastest rate on record during the three months to July, another signal that the UK’s rapid drop in unemployment is yet to slow down.
The latest report on small and medium-sized manufacturers from the Confederation of British Industry (CBI) shows that the businesses took on more new employees during the quarter than in any period since their records began, 26 years ago.
More than a third of the small industrial companies took on new staff during the period, while fewer than a 10th shed staff.
Unemployment fell to 6.5 per cent in May, the lowest level since late 2008, and down from 7.8 per cent 12 months earlier.
Despite extremely rapid employment growth, the CBI is concerned that there is still little pick-up in export orders. A net balance of 14 per cent of small manufacturers reported an increase in domestic orders during the period, while the equivalent for export orders was only minus two per cent.
Export orders have underperformed this quarter, which may in part be because of the strength of sterling,” said the CBI’s Katja Hall.