BCC survey reveals 2010 will be a tough year

| December 29, 2009 | 0 Comments
”BCC

A survey by business group British Chambers of Commerce (BCC) has revealed that businesses are cautious about a recovery next year with figures showing that two thirds are planning wage freezes or pay cuts next year.

The survey, which questioned 260 companies, also revealed that in a bid to reduce overheads, one in five is considering scrapping benefits such as bonuses and gym memberships.

David Frost, Director-General of the BCC, said: “It is clear that another tough year is in store for the private sector.”

“Thanks to businesses and their employees, who have made huge efforts to avoid extra redundancies during this downturn, unemployment is lower than most expected,” said Mr Frost.

He continues: “From what businesses tell me, they simply need Government to get off their backs and let them get on with the job of creating wealth and employment.”

While the figures will be a concern for workers, companies have said they will avoid cutting jobs where possible and will explore other ways of cost-cutting.

In terms of unemployment, the Chartered Institute of Personnel and Development (CIPD) is now predicting that unemployment will peak at 2.8 million next year, rather than the 3.2 million previously forecast.

Unemployment reached 2.49 million during the three months to October, however the pace has slowed sharply over the last few months.

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