More than half of manufacturers across Kent and the south east have opted for pay freezes or pay cuts rather than lay off workers, according to a survey.

With jobless figures published tomorrow expected to show a big jump in unemployment across the county and nationwide, EEF, the manufacturers’ organisation, has found many firms looking at ways of holding onto vital skills.

However, it says that despite taking tough measures to avoid job losses, a quarter of manufacturers have made people redundant, with half saying they had frozen recruitment.

According to the survey, 42 per cent of companies in the south east have implemented a pay freeze, with a further 10 per cent implementing pay cuts.

It further revealed that around one in six manufacturers have introduced short-time working with a similar number increasing the amount of time spent training their workforce.

David Seall, EEF’s South East regional director, says this highlights the urgent need for the Government to provide assistance for companies to keep skilled workers.

"Firms have reported a range of strategies to avoid costly job losses – from pay freezes and a limited number of pay cuts, to short-time working and temporary production stoppages.

"They are doing their utmost to avoid losing skills from the industry, which would have implications for companies when the upturn comes."

However, he warned that the situation would become more difficult with a rise of job losses across the sector. He added: "The need for more flexible support for companies and employees on short time working is becoming more urgent."

Meanwhile, unemployment for the three months to January is expected to top two million, with consulting group Oxford Economics forecasting that a million British workers will lose their jobs over the next two years.

Unemployment went up by 21,000 (0.4 per cent) in the south east in the final quarter of 2008, according to a labour force survey.

In Kent and Medway, the jobless total jumped to 27,941 in January, up 3,144 over the previous month and 11,000 higher than the same time a year ago.