As the global financial crisis deepens, it is no surprise to learn that unemployment figures for August rose at a pace not seen for 16 years.
The Office For National Statistics (ONS) recorded a total of 1.72 million out of work, an increase of 81,000 on the previous quarter.
Perhaps equally as worrying are the number of available jobs, shrinking by almost 57,000 and down to 613,200 across the UK.
The Forum Of Private Business (FPB)has said that calls to it’s legal advice helpline regarding employment issues rose by 68% in September, with 12% of calls relating to redundancy issues.
Clearly small and large businesses are in a similar situation and as the recession bites only the strongest companies will survive. For small business however, shedding jobs cannot be made in the same detached manner as that afforded to larger companies.
The small company employees are often friends or relatives of the owners of the business and laying off staff can become very personal. But owners must do whatever they need to do to see out these most difficult of times.
The FPB, as with other small business associations, advises it’s members to seek advice early regarding employment matters.
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1 comment so far
1 Simon Tate // Oct 11, 2008 at 11:18 pm
The focus of the global economic meltdown seems to be widely on the larger financial institutions who many say are responsible for it in the first place. These figures demonstrate the trickle down effects of this crisis on and the problems small businesses are being faced with as a result.
Whilst commentators analyse whether or not governments should intervene to aid banks and if so, to what extent, they should be reminded of the innocent businesses who are suffering. Perhaps they should guide their efforts so that these enterprises receive the help they need before they are forced to make redundancies or even close down.