New research by the CBI has suggested that small and medium sized manufacturing companies are getting rid of jobs at the fastest rate since the early 1990’s.

Employment was one of the things that fell sharply in the final quarter of 2008. According to a survey, 38% of UK firms cut jobs in this quarter. New orders and output also fell dramatically in the final months of 2008, as demand for goods from UK companies fell due to the recession.

The CBI is saying that the first quarter of 2009 is going to be even harder on small and medium sized businesses.

What the CBI has to say about it…

The chairman of the CBI’s Small and Medium Business Enterprises (SME) Council, Russel Griggs said: “The jobs picture among smaller manufacturers has deteriorated markedly since last July in the face of rapidly declining demand for UK-made goods at home and abroad.

“Firms are steeling themselves for a very difficult few months with output and orders expected to fall at a record pace in the next quarter.

“As a result, job losses are expected to accelerate among SME’s.”

He also suggested that the only way to help decrease the amount of jobs being lost was to make credit more available to companies.

What do the stats look like?

According to the survey conducted, of 492 small and medium sized businesses surveyed, only 7% said they took on more workers in the final three months of last year.

Only 15% of the companies surveyed said they had increased their new orders, while 54% said they had fallen in the same period.

Also, a huge 70% of firms said that they were currently working below their target capacity as a result of the above stats.

The survey also revealed that small and medium sized businesses were increasingly worried about the economic outlook.

Optimism about the business environment and expectations of new orders also fell at its sharpest rate since the survey began in 1987.

What do you think?:

If you work in manufacturing, are you concerned about your economic outlook and job security? Or have you recently lost your job in manufacturing? Feel free to leave your comments about this article.

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