Firms reluctant to lay off staff

SMALL businesses across Europe are reluctant to lay off staff to cope with the downturn, according to a European survey.

The survey found that the business services sector, including retail and hospitality, expects the drop in orders to come to an end in the coming months. The personal services sector also predicts a relative improvement.

Chief executive of small business group ISME, Mark Fielding, said that while the European experience suggests that “micro enterprises” are employing more people than turnover considerations would require, this is no longer the case in Ireland.