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THOUSANDS OF JOBS could be at risk due to the recent increase in minimum wage, according to the Irish Small and Medium Enterprises Association (ISME).
In its final Business Trends Survey for 2015, the organisation says there is the potential for 60,000 new jobs in Ireland if costs for businesses are curtailed.
The survey finds that current and future sales are at their highest in eight years, with owners and managers “generally positive in expectations for the new year”. Ten out of the 12 economic indicators tracked have increased.
However, the report warns that job creation will decrease due to the minimum wage increase. As of 1 January, it was upped from €8.65 to €9.15 per hour. The survey lists the euro exchange rate as “the biggest area of concern” for businesses.
Mark Fielding, CEO of ISME, noted: “Following on from a mixed-bag of results in the previous quarter it is a relief to see such a positive report coming from owner-managers this time round. The recovery might finally be trickling down to SMEs but it is important that we focus now on managing our costs and nurturing this growth.”
Fielding said that despite some improvements “SME competitiveness has taken many blows this year”.
Rents, insurance, energy and legal costs have all increased while the slack consumer demand has dictated that pricing and margins have reduced. This means that small businesses operating on increasingly tight margins cannot afford any more cost increases.
He added that, as the general election draws closer, “We are being treated to more and more outlandish political promises and policies”.
“Labour’s promises to impose a ‘living wage’ during the next administration will result in cost-conscious employers delaying and cancelling job creation which will be unaffordable if those increases are introduced.”
Living wage
Last month, Joan Burton said introducing a living wage of €11.50 per hour makes sense.
The Tánaiste said the next government should look at a €2 increase over four years – 50 cent per year.
“I don’t see any threat in the fact that people would earn a decent wage,” she stated.
The ISME survey was conducted in the third week of December, with 956 SME respondents. Some 54% of respondents employ less than ten people, while a further 36% employ between 11 and 50 people and the remaining 10% employ between 51 and 250 people. Geographically, 32% are from Dublin with 59% spread across the country, while 9% operate from multiple sites.
30,000 new jobs
The Small Firms Association (SFA) published its outlook for 2016 today. The survey found that 77% of owner-managers feel the business environment is improving, with just 4% indicating it is getting worse.
Domestic economic growth was highlighted by over 40% of businesses as their biggest opportunity in 2016. Other positive factors identified were specific sectoral opportunities (14%), exporting (12%) and bringing new products to market (10%).
Over 65% of survey respondents indicated their intention to recruit over the coming year, up slightly since the last survey in June.
This was welcomed by Patricia Callan, SFA Director: “Small firms already employ over half of the private sector workforce and almost two-thirds of our members will be hiring in 2016.
“Small firms have a crucial role to play in job creation around the country, reducing unemployment and attracting emigrants home to work. We expect small firms to create 30,000 jobs in 2016.”
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Name them. I bet there’s a few there either
A. Related to someone
B. Party hacks
C. Incompetents who failed miserably everywhere else.
D. Someone with 3 state pension already
I heard there are bondholders in it also
The legend Gerald Fleming is in the pic – giving the V sign to camera – He knows the sea and wind and arrows and fronts and stuff. Wink. Goodnight.
Gerard Fleming & Co are using the equipment that Michael Fish was using back in 1987
Give them time the floods only started a month ago
They are a bit late coming together at this point. It is a pity we have a habit of been re active rather than pro acrive.
Minister Hayes during the week as an example thinking he great announcing better protection against floods. Hello minister nothing has changed in the ladt few hundred yeara all the places that flooded always were prone to floods.
Declan the limerick flood never happened before. Came from a totally different direction. Never happened in living memory.
What is the national emergency group anyway? ????….. No idea. .. Never heard of them but probably a shower of overpayed, overindulged “experts” feeding at the national troff
I may be wrong but I’ve yet to see any Civil Defence or Army Reserves out helping!
Civil defence were deployed in Cork City last night, including river rescue units.
Defence forces troops were out in limerick the other day as was the civil defence
Civil defence are deployed at a local level. My mother volunteers with them and they’ve been called out on various occasion throughout the year for flooding etc.
They don’t get nearly enough credit. Majority of them my mam works with are volunteers.
Don’t mind sitting around talking about what might happen. Go to Holland and ask the Dutch how they dealt with coastal erosion and flooding…take a shortcut and ask somebody who has already dealt with the problem and has the solution…saves money …gets results faster
I smell oodles of overtime here.
I’d say the expenses are pretty good as well.
They will reconvene in the summer
What summer?
2013
A talking shop…..
god help us if we do get a real natural disaster. There isn’t one person in kildare street with leadershio skills.
No help from the army in clonmel as shatter closed the army barracks and posted the soldiers to kilkenny Bks.just to keep big mouth Hogan happy .
Rumour has it that they reckon stricter internet controls and more pylons will greatly reduce the number of floods we are experiencing.
The piss and wind brigade!
The response, or rather lack of, by the Irish authorities to the continued bad weather and flooding is severely lacking.
A few sandbags isn’t going to be any good in situations like this and measures that will divert floodwaters and limit damage will need to be taken.
Another example of the complete lack of response is that the main online Irish data on flooding is on the OPW website and hasn’t been updated since 2009.
There is no attempt to crowdsource flooding data in realtime, a methodology which has been successfully used in other countries.
Is it not a bit illogical to have the National Emergency Coordination Centre right in the centre of Dublin? If the emergency were anything besides weather, the centre of the capital might not be the best place to be.
It’s about time national fire ambulance. Service. Mr sean hogan against this if look at fire service some refuse to Ture out flooding.
Alot of county’s, I’d say most, (retained anyways), don’t turn out to flooding. It’s crazy. They’d rather send the civil defence cos it’s free. I’d love to see the chaos in the country if the gardai was run like the fire service. In this country they under-react to everything, and when something goes tits up they cover there arses till it’s forgotten about.
Irelands Justice League?
Nothing
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