The survey findings, released this morning, show that one in five employers are planning to increase permanent headcount over the next quarter.

Confidence in making hiring and investment decisions remains positive, with a net balance of 10%, but is at its lowest for the past year.

However, employer confidence in the UK economy has moved into negative territory, with the net balance falling from +6% last month to -3% in the latest report, as 31% of employers now expect the economy to worsen and just 28% anticipate it improving.

Other findings in this survey of 601 employers include:

• 40% of employers surveyed have no spare capacity and would need to recruit to meet additional demand;

• More employers cite concerns about a lack of appropriate candidates for construction jobs – both temporary and permanent – than any other sector area.