THE Small Firms' Association has predicted that 46,000 jobs will be created in 1996. Its director, Mr Brendan Butler, describes the prospects for this year as "excellent, apart from the pound/ sterling problem".

He was commenting on the release of a survey by the SFA which shows that 67 per cent of small companies expect to increase employment this year. The survey covered 222 small companies and shows a net increase in employment of 10.2 per cent between January 1995 and January 1996.

Twenty five per cent of companies actually saw a fall in the numbers employed, 31 per cent saw no change and 58 per cent registered increases.

This year, 67 per cent anticipate increasing their workforce, 21 per cent foresee no change and 12 per cent expect to lay people off. The overall increase in employment by small firms in 1996 is forecast as 12 per cent by the SFA.