West Midlands businesses are less confident about hiring new staff this year compared to last year, according to a survey by Barclays.
Confidence about creating new jobs has dropped from 31 per cent in 2011 to only 24 per cent this year, according to the Barclays Job Creation Survey 2012.
The survey reveals the majority of UK firms, 58 per cent, plan to create new jobs this year, up one per cent from last year, although many private companies in the West Midlands, 30 per cent, remain uninterested in taking on ex-public sector workers.
The survey questioned 670 executives from UK businesses of all sizes, the second year the research has been run.
In the West Midlands businesses were positive about the Government’s efforts to remove barriers to job creation, with 13 per cent stating that it is having a positive impact compared to just 10 per cent nationally.
Ray O’Donoghue, managing director for Midlands Corporate Banking at Barclays, said: “There is still a disconnect between public sector workers and private sector employers, with a persistent element of mistrust of the former by latter.
“This is something that needs to be challenged directly if we are to have a fluid employment market place that allows people to move between the public and private sector easily, bringing the best of both worlds to their roles.”
Nationally job creation confidence among large companies, with turnover of more than £500 million, was down to 70 per cent, compared to 85 per cent in 2011.
Small businesses were more confident, with 51 per cent planning to create new roles compared with 41 per cent last year.
Of companies that plan to create jobs this year 82 per cent said the roles would be middle management/skilled labour, while 59 per cent plan to create unskilled jobs and 21 per cent will create senior management positions.
When asked whether job creation would generate sales, or sales growth would lead job creation, more than three quarters, 77 per cent, said growth needs to come first, although large companies are now much more likely to put investing in jobs before sales growth in 2012 compared with 2011.
Mr O’Donoghue added: “It is good to see smaller companies in particular more confident around creating new positions than they were last year.
“There is also more confidence amongst larger firms around investing in jobs in order to grow sales, rather than waiting for sales to increase before hiring people, a good indicator of increased confidence and hopefully a sign of significant investment within the corporate sector in 2012.”