Four in ten businesses have cut payrolls


OVER the last six months, over four out of ten businesses have made cuts in their payroll, most of which were small businesses, a new survey has found.

The business survey, presented yesterday, was conducted by the CyproNetwork Consultancy Group and the Cyprus International Institute of Management (CIIM) under the auspices of the Finance ministry, which revealed tendencies and predictions concerning business performance.

The survey comprised 400 telephone interviews conducted between May 28 and June 17, on a Cyprus-wide basis, with businesses from the trade, services, industry and construction sectors.

Seven out of ten small businesses responded not employing part-time personnel during this time, while three out of ten said they have not created any new jobs over the last six months.

On average, 1.6 jobs were created per business during the last half year, mostly in the services sector and by large businesses in the Paphos district, while about one in six businesses have created marketing jobs.

Conversely, the goods production and services sectors have created an average of eight jobs over the last six months.

With regard to predictions regarding the number of employees over the next six months, seven out of ten businesses projected that it would remain constant, 16 per cent thought it would increase, while 12 per cent expect a reduction.

Over one in four businesses – 27 per cent – expressed dissatisfaction at the their performance over the last six months, one in three said they were somewhat satisfied, and one in ten said they were very satisfied.

The satisfaction average grading was measured at 2.3 out of 5, translating into a lower-than-normal index among business owners.

According to the survey’s findings with regard to the most important problems today, roughly half listed reduced consumption and sales, as well as the absence of liquidity, one in three identified increased competition, and 26 per cent cited insufficient demand.


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