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Smaller firms' turnover at 3 year high

Despite the financial doom and gloom that’s been enveloping the country recently, it turns out that a lot of smaller firms’ turnover reached a 3 year high in Q3.

Data recently released by Bibby Financial Services showed that 3,000 smaller businesses achieved a turnover figure not seen since before the recession began. However, this increase in turnover had not led to an improvement in business confidence. Nearly a quarter of business owners and limited company contractors think we will not see any real signs of improvement in the economy in the next 3 years.

Companies in the South West are the most pessimistic about the recovery prospects whilst firms in Yorkshire and Humberside are most likely to say that trading conditions are tough at the moment.

Edward Rimmer, the UK CEO at Bibby said the data reflects the September forecast from the BCC which predicted 1.7% growth in GDP this year and 2.2% next.

Annual turnover in the recruitment industry for the year to March 2010 fell to slightly under £20bn, a drop of over 12%, according to the REC's annual industry report. Permanent placement turnover fell by a massive 27.6% whilst turnover for temporary placements and contractors dropped 10.4%. Demand for temps has focussed on areas where there is a skills shortage and this has pushed employment costs up.

There's also been a significant drop in the amount of people working in the recruitment industry. According to the REC report, 80,528 people are now employed by the sector compared to the 95,865 recorded for last year's report. Of the 15,000 plus job losses, 6000 of them were permanent consultants.

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