The Small Firms Association has claimed that the level of redundancies contradicts reports of positive job creation prospects.
The SFA says redundancy levels have now reached a 22 year high and over 500 people per week have lost their job since the beginning of 2004.
The body expects 30,000 jobs to be lost this year, adding that this will wipe out the positive effect of new job creation, which the SFA expects to be in the order of 36,000.
SFA director Pat Delaney said there must be further pay moderation. He said a 'spiralling' cost base in areas such as labour, insurance, energy, commercial rates and service charges had put increased pressure on the ability of business to retain current employment levels.
The SFA says the manufacturing sector has been hardest hit this year, with 3,020 jobs lost, 34% of all jobs lost to date.
