A third of finance and business services employers plan to take on more staff in the last three months of 2006, with just 8% planning to make cut-backs, according to new research.
The details – revealed in the latest Employment Outlook Survey of 2,100 businesses by recruitment firm Manpower – show firms expect their most bullish fourth-quarter hiring activity since 1997, while London employers expect hiring intentions to reach a five-year high.
London is benefiting from the uplift in hiring confidence, with nearly four out of 10 (39%) employers expecting to expand their workforces, and 9% to trim staff numbers.
Mark Cahill, Manpower UK’s managing director, said: “The improved outlook in the finance and business services sector has a lot to do with confidence in the City, after a dip in the equities market and the spike in oil prices.
“Alongside increased mergers and acquisitions activity, we’re also seeing an upturn in bonuses. However, there are signs too of wage inflation as firms fight to attract and hold on to quality staff.”
Employers in the hotels and retail sector are less optimistic, and their hiring expectations have decreased.
“Many firms increased headcount in anticipation of higher sales pre-World Cup and already have the capacity required for the end of the year,” Cahill said. “Any hiring made for the festive season is likely to be flexible and temporary.”