More than four in 10 (44%) employers plan to increase permanent staff headcount in the next quarter, according to May’s JobsOutlook from the Recruitment & Employment Confederation (REC).

The report also reveals 52% are planning to hire new staff over the next 12 months, while 22% plan to add to their numbers of agency workers in the next quarter, with the same percentage planning an increase over the next 12 months.

Meanwhile the proportion of employers applying headcount freezes continued to fall in April, declining to 20%, down from 43% in late 2010.

Roger Tweedy, the REC’s director of research, says: “This is the first real confirmation that employers are feeling more confident and are taking a long–term strategic view of their workforce planning. Creating more permanent jobs and the lifting of headcount freezes are solid indicators of this increasing confidence. This is encouraging news at what remains a difficult and volatile time for the UK jobs market.

“The survey also confirms the emergence of a two tier jobs market with 60 per cent of public sector employers predicting a significant impact on their workforces as cuts begin to bite. The unexpected surge in business confidence gives hope that private sector employers can absorb further public sector job losses.”