In October last year we reported on improved labour market figures and the economy’s reliance on SMEs to help bring the UK further out of recession.
Seven months on, it now appears confidence is so much higher that employers are beginning to experience increased competition for their staff.
According to results from our latest Business Barometer*, 61% of SME owners and senior managers are under increased demand from employees to raise wages and 41% feel pressure to incentivise their staff to stay.
Confidence in the manufacturing and exports industries is notably high. According to research by the British Chambers of Commerce (BCC), two out of five firms that export goods or services are looking to hire more staff and 71% expect turnover to improve over the coming months. An increase in confidence in the exporting industry is good news for the UK, as exporting to high-growth markets will provide a sustainable boost to the country’s recovery.
This positive trend looks set to continue, with the International Monetary Fund (IMF) predicting economic growth of 2.4% this year. However, if we are to rely on export for a healthy and sustainable recovery, it is vital that British businesses receive the support they require from the government and financial institutions.
* The Close Brothers Business Barometer is conducted on a quarterly basis. It canvasses the opinion of SME owners and senior management throughout the UK on a range of issues affecting their business.
