UK SME's planning to add jobs over coming 12 months

This article taken from Onrec highlights some good news rather than the constant barrage of bad news at the moment.


New research from GE Capital reveals that UK SMEs plan to create 470,000 new jobs in the coming year as optimism over future growth outweighs uncertainty over the future of the UK economy.

Almost two in five businesses 38% surveyed for GE Capital’s “SME Employment & Optimism Pulse” - part of a survey of over 1,000 European SMEs - said they plan to increase the number of full-time employees in the next 12 months, compared to 7% who were planning to reduce in number. Amongst medium sized businesses (50-249 employees) the proportion was much higher, with half 50% planning to hire in the coming year. Micro-sized businesses – those with 2-9 employees - were less positive with only 22% aiming to increase headcount.

Overall, 46% of businesses surveyed in the UK were optimistic about the growth prospects of the sector in which they operate, although there was a much more marked difference in responses depending on the size of the business. Medium-sized businesses were much more likely to be positive (56%) than negative (18%), where as micro businesses were more likely to be negative (47%) than positive (39%) about their prospects.

Despite the fact that UK SMEs were positive on employment, they still lagged behind Germany and France in employment stakes. Of the 1,000 European companies surveyed, 55% of small and medium sized companies in Germany said that they would increase headcounts, creating 971,779 new jobs over the next twelve months. In France, 47% were planning to increase headcounts, creating 630,686 new jobs.

Overall, businesses in France and Germany were slightly more likely to feel positive about growth in their sector in the next twelve months, with half (50%) of SMEs in each country claiming to be optimistic.

John Jenkins, Chief Executive of GE Capital UK said:

“Although the picture for UK job creation is positive, there are noticeable variations depending on the size of businesses and the region and sector in which it operates, highlighting the kaleidoscopic conditions experienced by the UK SMEs.

“It’s clear that the smallest businesses, which after all make up the backbone of the UK economy, may need further support to boost business confidence and realise their potential.”