Scottish firms less likely to axe jobs this year

SCOTTISH companies are less likely to cut jobs this year than their counterparts south of the Border, according to a survey by Barclays.

In the latest sign that Scotland’s economy may be proving more resilient than the UK as a whole, the bank found that 88 per cent of Scottish companies are not planning any job losses within the next 12 months. That compares to a UK average of 79 per cent according to the survey of 700 firms.

However, only half of Scottish businesses are creating jobs this year, down from 64 per cent in 2012.

Ally Scott, managing director of Barclays Corporate Banking in Scotland, said: “While there has been a drop in job creation plans among Scottish businesses, we should take some comfort in the confidence that most workforces will remain stable.”

He said most Scottish firms were still “hedging their bets” when it comes to job creation, with sales growth a prerequisite before they started expanding their workforces.

“While there is a clear recognition that there will continue to be a shortfall between private sector hiring and public sector contraction, there is also an aversion to risk among Scottish businesses when it comes to hiring,” added Scott. “Stability is good news but job creation is needed to stimulate growth.”

Barclays’ survey follows the latest purchasing managers’ index (PMI) from the Bank of Scotland which showed economic activity increasing modestly in March. It was the sixth consecutive month in which the PMI report showed the Scottish economy expanding.