Economic recovery still too fragile, says the FSB

Date: 21st April 2010

Small enterprises in the UK are unable to increase the size of their workforce in the current economic climate as the recovery remains "too fragile", according to the Federation of Small Businesses (FSB).

The organisation claimed that new unemployment figures show there is still too much risk involved for small businesses to take on new staff members.

John Walker, FSB National Chairman, said: "The 'FSB Voice of Small Business Index' shows that small firms are at the heart of the recovery but still need support if they are to get us firmly on that road to recovery and if they are to begin taking on staff again."

"The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery."

Earlier today the Office for National Statistics revealed that the number of unemployed people in the UK increased by 43,000 in the three moths to February 2010.

The unemployment level now stands at 2.5 million, the highest number recorded since the three months to December 1994.

Posted by Emily Smith