Recruitment plans boost business confidence

according to a survey by Abbey National business

BRITISH businesses are looking forward to a confident new year as one in five companies plan to expand their workforce over the coming 12 months, according to a survey by Abbey National business.

The positive mood continues with more than half (51%) of the country's businesses1 intending to maintain staff levels in 2003. A further quarter (24%) of firms are hedging their bets by pegging recruitment plans to their
business performance over the next year.

In fact Abbey National business found that only 4% of all British firms say they will cut staff numbers next year. Although confidence is lower in some industries, notably the already depressed manufacturing sector, the overall
picture is similar across the country.

* The construction sector is the most confident of staff growth, with 24% of firms planning to recruit more workers over the next 12 months
* Least confident is the manufacturing sector where only 14% of firms plan to hire staff, but 8% plan to cut jobs, the highest regional figure for job losses
* Companies with between 50 and 249 staff are most upbeat, with an above average 30% planning to recruit next year
* Regionally only the North East bucks the national average for recruitment plans with just 15% of businesses intending to hire staff in 2003

Gary Hockey-Morley, director of Abbey National business, says: Recruitment plans are a good indicator of business confidence and companies are sending out a very positive message about their hopes for the coming 12 months.

These are the firms that form the foundations for British business and set the pulse for the economy. It is heartening to see how upbeat they are and we predict continued growth for 2003.

Research by Abbey National business found that on average UK companies1 have to recruit new staff six times a year, paying out an average of 764 in recruitment fees and advertising costs each time. However it is not easy to
find the right staff.

Problems businesses face include:
* A lack of suitable staff - according to 50% of companies
* Poor attitude from jobseekers - according to 10% of firms
* Wage expectations too high - according to 8% of businesses

Abbey National business is offering a series of free recruitment guides on its website www.anbusiness.com which are available to all companies, even if they are not Abbey National business
customers.