Latest news: Optimistic outlook for SMEs

Graduates looking to break into the business and management sector in the near future could find small to medium-sized enterprises offer the most opportunities. 14/08/2012

According to the latest Chartered Institute of Personnel and Development (CIPD)  Labour Market Outlook, a survey of more than 1,000 UK employers, private-sector SMEs are currently most optimistic about increasing staffing levels in the near future.

The study also found there are more large private sector organisations planning to recruit in the coming months than those intending to decrease their staffing levels.

However, the CIPD warned that although the outlook looks good, a large proportion of UK firms are keeping on more staff than they require, with output having dipped significantly over the past year.

Gerwyn Davies, labour market adviser at the CIPD, commented, 'Recent falls in unemployment suggest that the labour market is on a sound footing, but a closer examination reveals that  many employers are holding on to more staff than is required by the current level of demand in order to retain their skills.

'This is a make or break moment for employers - unless growth picks up many will find that they cannot hold on to some workers any longer.'

He went on to add that one positive is that companies look like set to be able to increase their output quickly if demand grows.