More than 80% of NW businesses 'not hiring' over next year

by Q Radio News

More than 80% of businesses in the north-west, including across the border - are not planning to hire within the next year.

The stark warning forms part of a new survey carried out by Derry-Londonderry and Letterkenny Chambers of Commerce.

Meanwhile, nearly two-thirds (58%) of businesses in the region say they could reduce their workforce due to the impact of the pandemic.

The majority of respondents (72%)  - out of 130 - also said Brexit remained a concern with more than a fifth saying they have not made preparations for the end of the transition period later this year.

Businesses told the survey that they have several outstanding concerns ahead of 31 December including increased paperwork and bureaucracy, barriers to trade, loss of business and customers, exchange rates fluctuations, supply chain interruptions, and access to skills and workforce.

In a joint statement, Chief Executive of Londonderry Chamber Paul Clancy, and Toni Forrester, Chief Executive of Letterkenny Chamber said:

“The results of this survey make for sobering and deeply worrying reading.

"While the impact of Covid-19 has been clear for all to see, the evidence of its devastating impact on our entire regional economy has been laid bare. 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."

They added: "There are so many unknowns remaining and, with business capacity now focused almost exclusively on responding to the impact of the pandemic, time is quickly running out to prepare local companies. We are again pleading with the UK Government to deliver clarity and certainty for our local economy and ensure every effort is taken to guarantee uninhibited trade across our islands.”