Hiring plans offer little joy on jobs

Firms remain only mildly optimistic about creating jobs in the coming months despite the end of the recession, suggesting the employment outlook for the rest of the year is "stagnant", research today reveals.

A survey of more than 2,000 UK employers showed that those in utilities and finance were most optimistic, while construction companies, hotels and restaurants were less likely to recruit staff.

Confidence continued to return to manufacturers, fuelled by the UK's "buoyant" exports market, according to the report by employment group Manpower.

Employers in East Anglia were most likely to take on extra staff, while those in the West Midlands were least positive.

Mark Cahill, managing director of Manpower, said. "The gap in hiring intentions between the strongest and weakest industry sectors and regions is widening and, although unsurprising, it is a concern for the UK's post-recession growth strategy.

"If the country is to avoid the predicted 8.1 per cent peak in unemployment, there must be significant business growth underpinned by workforces with the skills employers need to drive and support that growth.

"We know already that there will be challenges - public-sector hiring intentions are expected to plummet - and there is increasing pressure on the private sector to lead the country back to growth."