Signs of improvement in the engineering sector could be a “false dawn”, according to chief executive at technical and engineering recruiter Morson Group.

A report from the Engineering Employers Federation predicts the sector will grow by 3.7% this year and 3.2% next year.

But Mason told Recruiter that public sector cuts are set to take their toll on the sector. “Coming out of recession temporary recruitment activity tends to increase more than permanent. I think it may be a false dawn.

“There a strategic defence review and the public sector review along with a wave of cuts. There will be a slow up of permanent hires in the public sector. Some of the engineering projects related to the MoD could be cut back as well. I think we will have to wait to see the impact of the cuts.

“In other areas there are postive signs. There is more demand in the nuclear and power sectors. That activity will start to increase, although there will be small numbers hired initially. The construction sector may also start to pick up at senior level.”