Increase in plans to take on staff

THE number of Irish firms intending to increase their staff levels in the next three months doubled in the second quarter of the year, according to employers’ representative body IBEC.

News of the year-on-year growth — to 20% of firms — figures in the latest quarterly Business Sentiment Survey, published today by IBEC. This also shows that the majority of firms remain positive on their trading outlook during the third quarter of the year.

“The survey provides further evidence that business is now well-placed to drive economic growth and recovery. Firms’ confidence in both the current trading conditions and the three- month outlook for their own businesses has stabilised at a solid level,” according to IBEC’s chief economist Fergal O’Brien.

However, Mr O’Brien added that firms continue to remain much more confident about the outlook for their own businesses than for the wider economy.

“Given the ongoing uncertainty caused by the eurozone debt crisis, this isn’t surprising,” he said.

IBEC also said the results of its survey further highlighted the gap between exporters and those firms dependent on domestic sales.

“If we’re to really tackle the unemployment problem, domestic demand must improve and government must communicate better with consumers in relation to the nature and scale of the economic challenges and it must give clarity to households on the precise scale of future tax changes and household charges,” said Mr O’Brien.

The Small Firms Association (SFA) said that while many SMEs remain under serious pressure, sentiment is also improving in that area.

According to the SFA’s latest business barometer, more SMEs are likely to take on additional staff rather than let people go in the next quarter, for the first time since the start of 2009.

SFA director Patricia Callan said the Jobs Initiative and lower employers’ PRSI rate have seen small businesses responding with “real job creation”.

“The Government must continue to improve the competitive environment in which small businesses operate, cutting costs wherever it can,” she added.