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Fears for jobs with small firms in London

16/02/2009

Jobs with small to medium businesses in London could be under threat, according to a report commissioned by the Financial and Leasing Association (FLA).

The report, carried out by the Open University business school, surveyed 1,300 small and medium-sized enterprises (SMEs) and discovered 71 per cent of London companies saw sales slump or fail to grow in the fourth quarter of 2008.

This has resulted in 23 per cent of companies slashing jobs, the biggest decline in the country.

However, those looking for job vacancies in the north-east or Scotland will be heartened to know both regions enjoyed sales increases of 45 per cent and 42 per cent respectively.

Despite the mixed news, Stephen Sklaroff, director general of the FLA, said: "The financial crisis in the City of London may well have contributed to the clearest north-south divide for some time."

And he warned: "But there is growing evidence that the problems in the capital are rippling out to every other area of the country, and SMEs in all regions are braced for an extremely challenging year."

Many graduates currently pursue their careers in London after finishing university but this trend could change if more job vacancies begin to develop in other parts of the UK.

 

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