Employers 'freezing recruitment plans'

Updated 12.16 Sun Aug 31 2008

Keywords: credit crunch, employment, economic downturn

Three out of four employers are freezing their recruitment plans because of the effects of the economic downturn, according to new research.

A survey of 1,400 firms across the UK also showed that most were being adversely affected by the credit crunch, with two out of three saying they could not rule out making workers redundant.

"Employers have had to put a hold on recruitment as the credit crunch bites" - Managing director Peter Done

Employment law firm Peninsula, which conducted the study, said it was taking more than 3,000 calls a week from employers asking about redundancy.

Managing director Peter Done said: "Employers have had to put a hold on recruitment as the credit crunch bites. It is understandable that businesses want to be in good shape coming out of this economic uncertainty and so redundancy just cannot be ruled out.

"Employers must ensure they approach redundancy in a sensitive way and ensure they follow legal regulations to avoid ending up in court. Bosses must also keep their employees in the loop with what is going on.

"Obviously there will be many worried workers, so employers should make it clear to their workers what their intentions are."