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Employers' hiring intentions over the coming months reflect growing confidence

The short and medium-term outlook for growth in recruitment is continuing to improve, according to the Recruitment and Employment Confederation (REC).

The REC reports one in 10 employers anticipate an increase in their permanent staff levels over the next three months, an uplift of 5% on the previous month, while 16% expect their permanent staff numbers to rise in the next 12 months compared with 13% last month.


Five per cent of employers expect to increase their temporary workforce in the next three months and 72% expect to maintain the same level of agency staff over the next year.

Although four out of 10 employers said there had been no impact on their workforce as a result of economic changes but 22% of employers are making staff redundant.

Slightly more employers (3%) are now reducing hours or cutting pay in response to the continuation of the recession.

While the jobs market remains largely static, employers' hiring intentions and overall optimism grew again, according to the report. Commenting on the figures, REC director of research Roger Tweedy said: "It is encouraging that employer confidence is slowly but surely starting to manifest itself in terms of hiring intentions. However, it is very early days and a number of employers are still making redundancies or cutting working hours. Regular data on how employers are reacting to subtle changes in the jobs market is essential and we will continue to monitor the outlook for both permanent and temporary employment."