More job losses expected in 2012

Federation of Small Businesses (FSB) predict more job losses in 2012 as unemployment figures rise again.

TODAY'S (January 18, 2012) unemployment figures released by the Office for National Statistics show UK unemployment rose to the highest in 16 years in the quarter up until November, 2011.

Unemployment increased by 118,000 in the three months between September and November taking the total jobless count to 2.685 million.

Employment Minister, Chris Grayling said: "The overall level of unemployment is, and will remain, a major concern for the Government.

"The latest figures reflect the current challenging economic climate but also show more women entering the workforce and more students looking to supplement their income through work. When you take into account our welfare reforms the number of Jobseeker Allowance claimants has actually fallen.

"Despite the exceptionally difficult economic circumstances, finding work for the unemployed will remain top of the Government's agenda."

However, the FSB says smaller firms will be looking to shed staff in the first three months of the year.

The FSB is releasing new figures on small firms' employment intentions ahead of the Government's response to the Modern Workplaces consultation.

Figures from the FSB 'Voice of Small Business' Index show that a net balance of 6.5% small firms plan to lay off workers in the first three months of 2012 – the highest level since the survey began.

John Walker, the FSB Chairman, said: "If the Government makes the right choices and puts action into words we can turn this around. The Government has a good chance to make a real difference to the livelihoods of small firms when it reports on the Modern Workplaces consultation.

"Tinkering and increasing existing employment laws will only serve to worsen this situation. But by putting simple measures in place, such as excluding micro firms from the right to request flexible working for all, will help free businesses from the shackle of red tape so they can grow, innovate and take on new staff."

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