Government’s approach to growth is unrealistic

Businesses in the UK are calling on the Government to offer more financial incentives to create jobs as lack of confidence in economic growth is hindering recruitment, according to a new report by Bibby Financial Services.

The jobless total has now reached 2.6 million which has led to calls from UK businesses for the Government to act by providing the kind of financial incentives which could lift businesses out of the ‘growth trap’.

Many of the 1,000 businesses taking part in the research said they cannot take on more staff because of uncertainty in the wider economy and 34 per cent say financial incentives would help to stimulate job creation in areas of most economic need.

The results of the research by Bibby Financial Services follow the Chartered Management Institute’s Future Forecast report which points to a pessimistic 2012 with 43 per cent of UK managers saying they are expecting further redundancies next year, and that 38 per cent feel insecure in their current jobs.

While businesses are keen to invest in more staff in order to build their business, they find themselves stuck in a ‘growth trap’ as they do not have the funds to take on more resources which they would need to grow their business. And with just seven per cent of businesses blaming the lack of relevant skills and experience among potential employees, the survey suggests the greatest barrier to recruitment is confidence in the economy going forward, which 34 per cent cited as the main reason.