The number of employers with short-term plans to increase permanent headcount over the next quarter has fallen, according to the latest Recruitment & Employment Confederation’s latest JobsOutlook.

The report reveals 67% of employers have short-term plans to increase their permanent workforce over the next three months, compared to 74% last month.

Just 49% of employers expect to expand their permanent hires over the next 12 months, compared to 66% last month.

However, more than eight in 10 (83%) of employers claim their use of agency workers will either grow or stay the same during the next 12 months, maintaining current staffing levels.

Roger Tweedy, the REC’s director of research, says: “The fact that employers have reviewed their permanent hiring intentions this month is clearly a reflection of the uncertain economic context.

“However, overall confidence remains at the same level as this time last year and it is interesting to note that the number of employers planning to maintain or increase their permanent workforce over the coming 12 months still stands at over 90%.

“With the economy continuing to stagnate, businesses will understandably remain cautious, which is why we are seeing an increase in the longer-tem demand for flexible staff such as temporary and contract workers. This is a timely reminder of how a flexible workforce to help employers meet peaks and troughs in demand for services and products during uncertain times.”