Businesses revel in private sector employment high
Private sector employment in Derbyshire and Nottinghamshire hit its highest level in almost three years during the third quarter of 2010. However, firms are bracing themselves to axe jobs if government spending cuts start to bite, according to the Derbyshire and Nottinghamshire Chamber of Commerce.
According to the chamber’s latest Quarterly Economic Survey, companies in the region reported a net 14 per cent increase to their staffing levels, which is the highest figure since March 2008. The chamber said the positive results were due to the respondents reacting to the upturn in the economy.
Service sector businesses in particular were more positive about employment, albeit with less full-time positions and more part-time jobs. Manufacturers also reported improvements, but did face difficulties in recruiting technical and skilled manual employees.
Over the coming three months, overall expectations for future employment levels have fallen significantly in both sectors. This is “a stark indication that firms have big concerns about how the forthcoming cuts in public spending will impact their businesses,” said the chamber.
George Cowcher, chief executive of the chamber, said: “We are starting to see private sector employment return to pre-recession levels, which is positive news and would indicate that the recovery which started at the back end of 2009 has progressed throughout the year.
“However, the survey also indicates that members remain concerned about the possible impact of expenditure cuts to be announced in the forthcoming Comprehensive Spending Review.
“Many businesses in Derbyshire and Nottinghamshire rely on public sector contracts and if the cuts are deep, firms may have to take difficult decisions to cut costs which may result in reductions to their workforce."
