According to the organisation's latest quarterly referendum research, just over a fifth (22%) of small business owners intend to employ new staff in 2011, compared to 30% who said they would when asked in December 2010.
The survey also revealed that only a third of those that intend to recruit believe they will have to train new staff, the rest intend to recruit ready-trained employees.
FPB research manager Tom Parry said: "It is concerning that small business owners’ confidence in their ability to create jobs in the current economic climate and drive recovery is falling, and clearly there is still a pressing need to address barriers such as employment taxes and red tape, steep recruitment costs and skills issues.
"Micro, small and medium sized businesses were responsible for 65% of jobs created between 1997 and 2007, so smaller employers are crucial to job creation in this country."
Parry compared the UK situation with that of the United States, where small businesses are now leading the way in recruitment. He said that the high cost of employment, fear of making a mistake in the recruitment process and the continuing uncertain business climate are hindering UK small businesses bringing new staff on board.
According to BAPC chairman Sidney Bobb, the print industry is no different. He said: "Its very tough, printers are concentrating on retaining their own staff at the moment. In particular, the government spending cuts haven't helped. But when big companies stop spending it filters right down to the guy on his own. If the money isn't coming in they aren't going to be employing."
The survey revealed that 37% of respondents were concerned with new employees being able to "fit in", while 36% feared the time and cost of complying with employment legislation. A lack of technical or specialist skills among recently-hired workers (36%) was also cited.
There was some positive news from the research as 54% of employers said they expected to retain their current employees, while just 4% believe they will have to shed some staff.
