Employers 'optimistic about recruitment'

Employers are defying the "gloom" of the credit crunch and many intend to recruit staff this autumn, a new survey has suggested.

A new report on the employment outlook published by accountancy firm KPMG and the Chartered Institute of Personnel and Development (CIPD) has reported that companies are optimistic about medium and short-term employment prospects.

This suggests they are being influenced more by the economy's recent strength than the forecasts an economic slump could happen next year, the study claimed.

It found 86 per cent of employers plan to recruit further staff this autumn.

Chief economist with the CIPD John Philpott said it is still likely labour demand will ease next year "as the impact of recent interest rates rises and the aftermath of the credit crunch is felt throughout the economy".

Recently, the CIPD reported that some employers were struggling to fill their vacancies thanks to a "tight labour market".
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