Survey: SMEs foresee further wage cuts but no job losses

The number of people employed in the small and medium sized enterprise (SME) sector will not fall in the next 6 months, according to 83% of respondents to a business confidence survey.

The survey of over 330 decision-makers working in the SME sector found that the majority (56.4%), anticipated further pay cuts (over 65% have already accepted reduced salaries) rather than job losses in the next six months.

Only 28.7% of companies have implemented redundancies since April 2009, according to the survey carried out by accountancy and payroll software provider Big Red Book.

“The SME market is struggling in the current economic climate as much as any other sector,” said Big Red Book managing director Marc O’Dwyer.

“However, resilience in the face of job cuts and lower profits is evident across most of the companies surveyed and this business confidence could mean that the SME market is where we will see the first signs of recovery in the economy.”