Hiring practices ‘normalising’ in London
Fewer companies consider redundancies despite economic uncertainty
By Daniel Mather | CFO UK | Published 16:40, 22 June 11
Hiring is normalising in London with fewer employers in the city considering redundancies now compared to six months ago, according to a survey published on Wednesday.
The improved employment outlook among the capital's private sector employers is emerging despite persistent uncertainty about the prospects for Britain’s economic recovery, the study by KPMG and the Confederation of British Industry.
The number of companies with redundancies in the pipeline fell from 29 percent to 20 percent between December and June, with the majority of employers returning to 'normal' hiring levels.
Just over half of the 188 businesses polled said they were optimistic about their own prospects for the coming six months but just over a quarter said they felt less positive about the wider economy than they did in December.
The survey which canvassed the views of small to medium sized companies as well as large businesses, found that the number expecting to be hit by public spending cuts fell by 21 percent from 72 percent last December.
The main concern in London is the threat of a double-dip recession, while taxes and inflation remain significant worries for the coming year.
KPMG’s London chairman Richard Reid warned against the potentially damaging impact of extra regulation on the economy, and on London in particular.
“Two-thirds of London firms say that red-tape has increased in the last year, particularly in the area of taxation, which could not only hamper growth, but is a key consideration for foreign businesses looking to establish a base in Europe,” Reid said.
London is generally considered to be one of the best and most competitive locations in the world for businesses. An emphatic 94 percent of London-based companies said they expect next year’s Olympic Games to raise the city’s profile internationally.
Read also - CFO World's interview with Olympic Games' finance chief Neil Wood
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