More than half (53%) of all employers are planning to increase staff headcount this spring, but many have no intentions of increasing wages.

This was the message from the Chartered Institute of Personnel and Development’s (CIPD) first HR Trends and Indicators Survey which monitors employment intentions quarterly. Approximately 2,000 employers were polled in all sectors and regions throughout the UK.

The survey found that increased hiring intentions were strongest in the finance and public administration sectors. However, almost a third (32%) of manufacturing employers were expecting to reduce headcount by 5% or more.

Dr John Philpott, chief economist at the CIPD and author of the report said: “The expectation of strengthening economic recovery in 2004 is clearly making many organisations more optimistic about job prospects. However, manufacturing is a major exception, though job losses in the sector are consistent with recovery as employers restructure to boost competitiveness.

“In a tight labour market with relatively low unemployment, increased wage pressure could potentially hamper the ability of organisations to recruit. It is therefore encouraging that few employers expect a significant increase in wage costs."