Nine out of ten self-employed people refuse to hire because of rising costs

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The group is starting to recover activity, but has to face new challenges, such as the return of ICOs or the energy crisis

overwhelming majority. 92% of the self-employed, nine out of ten, do not plan to hire anyone for the rest of the year, given the complex economic situation facing a sector which, as denounced by the main associations, is exhausted everything is your financial pillow.

Activity is starting to recover after the pandemic ends, but the group has to face new challenges, such as the repayment of loans from the Official Credit Institute (ICO) or the energy crisis itself.

The data collected from an Adecco survey shows how 12.8% of those consulted attribute their decision not to increase the workforce for the new course to the increase in costs. A situation that, moreover, according to the latest ATA barometer – one of the most important associations in the sector – has forced 57% of them to increase the prices of their products.

The evolution of the price of electricity, fuel and even raw materials has become practically unsustainable, along with the problem of shortage of supplies in recent years.

However, the rise in costs is not the only reason Adecco respondents are considering not hiring. 50% say they don’t need it. But there are also 26.8% who can’t because their activity is shrinking. Barely 7.95% of the self-employed people consulted a plan to recruit more staff before the study. The positive thing about the survey is that only 8.87% were laid off this year.

Given the current difficult environment, respondents also express concern about other problems, such as the high social and administrative burdens or the high taxes they feel they are subjected to.

Similarly, the survey also highlights the difficulty of acquiring customers (24.55%), and the unfair competition that, according to what they state, «is fueling the underground economy as a result of growing economic difficulties and ineffective legislation in the fight against fraud”.

Despite the obstacles, the outlook is better than a year ago, when 31.4% admitted they were in a very bad situation. Now that percentage has fallen to 21.8%, although 29.3% admit they had to claim the cessation benefit last year.

Source: La Verdad

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