Positive surveys show Jobs Initiative is already working – Barry
Two surveys indicating that recruitment is on the rise show that the Government’s Jobs Initiative is already starting to work, according Fine Gael Cork East TD Tom Barry.
“Figures released by the Small Firms Association today (Monday) show that more small businesses are planning to hire staff than make lay-offs for the first time in two years. Just 3% of companies surveyed plan to make compulsory redundancies – that’s down from 22% in 2009.
“What’s even more encouraging is the fact that almost a quarter of companies plan to hire temporary staff over the summer, with 15% intending to take on permanent staff. These results give us the first clear indications that the Government’s Jobs Initiative is already beginning to make a difference. Confidence is gradually starting to grow once again.
“The decisions to halve the lower rate of PRSI and introduce a second lower rate of VAT are already having an impact, with 22% of firms planning to take on staff over the summer. I would be hopeful that many of these temporary seasonal jobs could turn into full time positions as the tourism sector benefits from these initiatives.
“The new 9% rate of VAT comes into effect from this Friday, and it’s evident that small businesses are already taking the reduction into account. This will be of benefit to a wide range of businesses, such as restaurants, hotels, cinemas and hairdressers. The short-term Visa Waiver Programme also comes into effect from next month, and should help to attract more tourists into the State, providing a further boost to the economy.
“A separate survey carried out by IBEC also shows the majority of firms are staying confident, with the number of companies intending to hire new staff in the next three months doubling to 20%. The results recorded by IBEC so far this year are well ahead of those for 2010.
“Many of the firms who told IBEC they intend to increase staff numbers are based in the export sector, which is undoubtedly thriving. However as export-led firms continue to prosper, there will be an knock on positive benefit for the domestic economy, which the Government is determined to revive.”