There has been a slight improvement in long-term hiring intentions and strong demand for temporary staff remains, according to the Recruitment & Employment Confederation’s (REC’s) JobsOutlook.

Of the employers surveyed, 59% said they were planning to grow their permanent staff in the next 12 months (54% when asked about the next three months), and another 35% said they would be keeping it at the same level, pushing the REC’s barometer up three points from the previous month.

Agency staff demand remains high, with 28% of employers expecting to increase their temporary workforce over the next three months and 52% planning to retain current levels, while 83% were looking to increase or keep temporary staff levels at their current level in the longer term.

In the public sector, a large majority (82%) of employers are expecting cuts to have an impact on hiring, alongside 23% of private sector employers. Confidence among private sector companies has grown, however, with 15% expecting no impact on staffing levels due to cuts, up from 6% last month.

Roger Tweedy, the REC’s director of research, says: “Hiring intentions for tempos are up on this time last year, despite the Agency Worker Regulations coming into force in October.

“Although the full impact of these Regulations will not be apparent until the first tranche of workers end their 12-week qualifying period, the early signs are that temporary and contract work will continue to provide a key outlet for employers and workers.”