Euro still a No-Know for Recruitment Firms

New research reveals 88% of recruitment companies donít understand Brownís economic tests and 48% admit they donít understand the Euro at all

As Chancellor Gordon Brown prepares to make an announcement regarding the íFive Economic Testsí on Budget day - the results of which may trigger a national referendum on the UK joining the European Monetary Union - a new survey reveals that nearly 9 out of 10 recruitment firms do not actually understand what they are.

The research, carried out by Close Invoice Finance, one of the UKís leading invoice discounting and factoring firms and a division of Close Brothers Merchant Bank, also discovered that 48% of recruitment businesses didnít understand the Euro at all.

This lack of understanding and confusion is also reflected in how divided the recruitment sector is with regard to being íproí or íantií the Euro with 40% stating they were against joining a single currency, 24% being in favour and 36% being still undecided.

The one view the recruitment sector does share is the belief that the government is to blame for not clearly explaining the issues surrounding the Euro. 96% of those questioned stated that the chancellor had not yet properly explained the íforí and íagainstí arguments to them, whilst 88% believed the government hadnít supplied them with nearly enough information to help them make an informed decision.

And, despite the lack of clear understanding about EMU issues amongst recruitment firms, 12% of the companies surveyed stated that the Euro already impacts on their day to day business.

Simon Cook, Managing Director of Close Invoice Financeís Northern Division, said of the findings - It is hardly surprising that many recruitment firms remain undecided about joining the single currency when they still donít have a clear understanding of the issues surrounding it. However, this issue will simply not go away, especially with the proposed expansion of the European Union in May.

Whatever happens, the decision to join or not to join a single currency must be based on economic and not political reasons. There is a need for more information so people can make a balanced decision. Arguably, an extended period of uncertainty benefits no-one.

Manchester based social research firm Vision 21 carried out the survey and questioned 200 firms regarding their views on the Euro and other issues that affect the recruitment sector.