Quarter of firms plan to recruit - graduate jobs

Graduates currently looking for jobs will be encouraged by the results of a new study, which has shown that 28% of businesses plan to actively recruit new staff this year.

The Confederation of British Industry (CBI) found that the prospects for job seekers were looking better this year.

Only 5% of companies that responded to the survey said they were not recruiting this year, compared to the 65% that operated a recruitment freeze last year.

And those graduates who have already managed to secure jobs may see their chances of a pay rise increase, with nearly half of the firms surveyed saying they plan to increase wages in line with Retail Price Inflation, or just below it.

Only 16% said they plan to freeze wages, compared to 47% last year.

A majority of 80% of companies said flexibility in the labour market helped them avoid job cuts, with many changing working patterns to navigate the recession.

Albert Ellis, chief executive of recruitment consultancy Harvey Nash, said: "We are seeing the first indications in the market that businesses are gearing up for a return to growth and this trend is most concentrated in the technology, financial services sectors and some areas of manufacturing.

"Although the recovery is fragile, there is a sense that the UK economy as a whole has turned a corner."