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Recession causes widespread recruitment freezes among small businesses

The recession has forced small businesses to slash recruitment spend, with only one in five hiring at normal levels.

According to recruitment job board Monster, more than a third (34%) of small and medium enterprises (SMEs)claim they need to recruit new staff but are struggling with a limited budget.

Fifteen percent have been affected "hugely" by recession leading to a total freeze on hiring. More than a quarter (28%) are continuing to recruit slowly with limited budgets, but 19% have been uaffected  - continuing to recruit on the same level as before the downturn.

Julian Acquari, managing director at Monster UK and Ireland, said: With smaller enterprises, the loss of one member of staff can have a dramatic impact on the remaining employees. The shrunken workforce will often be forced to take on a lot more work often beyond their existing capacity.

"Managers should not underestimate the importance of ensuring the wellbeing of the staff who remain and take appropriate measures to help prevent burnout.