SMEs To Create New Jobs In 2014

The research by Clydesdale and Yorkshire Banks also found that businesses which plan to create new jobs expect to grow employee numbers by nearly 10 per cent.

According to the survey, 32 per cent of SMEs intend to recruit new employees, with those who plan to create new jobs saying that they expect to grow staff numbers by 9 per cent. The research found that on average, Britain’s 4.9m SMEs expect to recruit 2.9 per cent more staff.

The recruitment intentions uncovered by the research were supported by significant investment plans. Nearly a quarter of SMEs questioned said they would spend additional money on new staff over the next year.

The survey shows that small businesses are the most likely to grow staff numbers, with 63 per cent of firms in this category saying they plan to create jobs compared with 36 per cent of medium-sized businesses.

Some sectors are set to benefit more than others from the jobs boom, with more than half of professional services and accounting firms and more than half of manufacturing SMEs polled citing plans to create jobs. Recruitment intention was lowest among wholesale and retail traders, with just 9 per cent of those questioned planning to hire new staff.

Indeed, the research points to growing confidence among the UK business community. More than half of SMEs questioned said that the UK economy offers good long-term prospects for business growth, and 97 per cent of respondents plan to invest in growing their business over the next year.

Paul Shephard, Director for Business and Private Banking with Clydesdale and Yorkshire Banks, said: “As the UK economic outlook continues to improve, we are starting to see a positive impact on recruitment plans. Increasing staff numbers can help businesses to boost productivity and competitiveness, and allow expansion into new markets as capacity grows. Creating new jobs is also good for the economy as a whole.

“While our research suggests that many businesses are becoming more confident about investing in their future, it is important that we recognise there remain considerable challenges to growth. SMEs are crucial to the UK economy and its emerging recovery and we will continue to support them in 2014.”