A new survey carried around by Derry and Letterkenny Chambers has delivered some worrying statistics for employment in the region in 2021.
The economic impact of COVID-19 and Brexit were always going to make 2021 a tough year for Northern Irish businesses, but a new survey has produced more worrying statistics on employer intentions than previously thought. The survey of 130 businesses in the North West was carried out jointly by the Derry and letterkenny Chambers of Commerce, and examined plans to hire next year.
Of those surveyed, a staggering 81% of businesses on both sides of the North West border said that they will not be hiring new staff or expanding their workforces next year. Around 58% said that they believe they'll actually have to make cuts this year to protect their businesses, and noted that they're already experiencing a sharp downturn in revenue.
RELATED: Derry-based game development studio Hypixel Studios acquired by Riot Games
The primary concerns of the businesses surveyed were the economic impacts of Covid-19 and Brexit, with 72% of respondents expecting Brexit to have a damaging effect on their business. Around 84% said that Brexit would be the greatest challenge to businesses in the North West over the next 1-2 years.
The UK government has been running a campaign urging businesses to prepare for the impact of Brexit on December 31st when the withdrawal transitional period ends, but companies say it has not provided enough assistance on how to prepare. Only around 5% have signed up to use the UK government's Trade Support Service, and around a fifth of businesses surveyed were unable to make any preparation plans at all.
RELATED: 'Derry businesses will need urgent support to get through new Covid restrictions'
The two chambers released a joint statement calling for government support for the businesses that are forced to close their doors, including: "At a time when redundancies and job losses are unfortunately inevitable and rising, it is concerning but unsurprising that over 80% of firms will not be hiring over the next 12 months. Governments across these islands need to put in place the necessary schemes and supports which will shield one of Ireland’s historically most deprived regions at a time of growing unemployment."
Source: Written based on press release
