Senior managers believe that employment will rise but costs will also increase if Labour is re-elected, according to a special Recruitment Confidence Index report by Cranfield School of Management.
The report shows that 31 per cent of managers anticipate that unemployment would increase under a Conservative government compared to 19 per cent under Labour.
Over two thirds of managers believe a re-elected Labour government would increase employment costs, compared to 32 per cent for the Conservatives.
Nearly half of the directors and managers surveyed in 535 organisations believe entry to the euro would also increase employment costs, claims the report.
Shaun Tyson, professor of HR management at Cranfield School of Management, said, "Employers appear to believe that entry to the euro would increase employment costs. This is a somewhat irrational view which we assume is based on the assumption that entry to the euro would bring more regulation from Europe."