Firms report credit crunch affects hiring

Some businesses in the UK are considering capping hiring or letting employees go as a result of the credit crunch, new research reveals.

A survey of 100 organisations by Baker Tilly found that the number of respondents who said they were going to reduce their costs rose from 26% to 45% during March.

Among those that were cutting back, one-quarter of firms identified the adjustment of staffing numbers as a major area where savings could be achieved, while 15% said that redundancies could be possible.

Laurence Longe, National Managing Partner at Baker Tilly, said that 'a cross-section' of organisations in Britain are beginning to feel the effects of credit crunch.

'Most are considering belt-tightening and proposing increased vigilance to deal with the tough market conditions,' he added.

A recent poll of City of London finance workers conducted by eFinancialCareers.com discovered that 41% believe that all banks share responsibility for the credit crunch.