One in three small businesses find the Jobcentre Plus network ‘ineffective' and believe that it should be reformed, according to research conducted by the Federation of Small Businesses (FSB).

Fewer than 20% of small companies said they used Jobcentre Plus to hire staff, relying instead on advertising and recruitment services.

The FSB has called for a dedicated small business manager to be appointed in each jobcentre and for research to examine how funding allocated to unemployment, training and business support initiatives is spent.

"As small businesses are the country's key employers, and are known to give a larger proportion of jobs to those who have previously been unemployed than big businesses, it's time the Government reformed Jobcentre Plus and made it work effectively," said FSB chairman John Wright.