Partner Article

Create Employment By Extending the NIC holiday

Unemployment in the North East currently stands at 10.4% and the Federation of Small Businesses believes that more concerted action is needed to tackle the problem.

Small and micro businesses across the region play a massive role in job creation and helping take people off the unemployment register.

Research that we have done show just how vital small firms are to the recovery, as almost nine in 10 (88%) unemployed people that find jobs in the private sector either start up or work for an SME.

Data tracked since the onset of the recession in 2008 shows that 88 per cent found work in a small business: 24 per cent worked in a micro businesses, 27 per cent with a small firm and 17 per cent started their own business.

Although there have been signs of a marked improvement in the UK labour market in recent months, levels of joblessness are still stubbornly high. Our new research demonstrates that small firms are vital to reducing this number and need to be supported.

So what should be done?

We’re calling for the Government to urgently review its current National Insurance Contributions holiday to allow more small firms to take on staff. By allowing more small businesses to take advantage of the scheme, more jobs could be created. Crucially, these could be full time jobs at a time when many people are taking on part-time work.

W e also think that the New Enterprise Allowance needs to be available from day one of a person claiming Jobseekers Allowance, and should be in line with the national minimum wage. This would help to encourage more people to start a business and if the funding was available for a full year, mean the business had more chance of survival.

This was posted in Bdaily's Members' News section by Simon Hanson .