Firms 'planning to recruit again' - graduate jobs

A study has boosted hopes of new jobs for graduates by revealing that almost a third of companies in the UK are planning to take on more workers over the coming months.

During the next 12 months, some 28% of firms intend to bolster job numbers, with 15% planning significant increases in the number of people they employ, according to the report by accountancy firm PwC.

The improvement is predicted for most parts of Europe as well as the US, as employers feel their way out of the recession.

It is a far better picture than last year, when only 13% of firms in the UK planned to expand their workforce, while 43% expected to slash jobs.

Currently, just 16% of firms think they might need to decrease their headcount in the near future.

Michael Rendell, head of HR services at PwC, said: "The expected headcount increases are encouraging news for the job market and suggest the private sector will be able to accommodate those public sector workers who are made redundant.

"While 13% of firms say the new jobs will be making up for reductions made during the downtown, 15% plan significant increases over and above this point.

"This shows a confidence that economic growth will continue, notwithstanding geopolitical uncertainty and the sovereign debt crisis.

"We expect demand to be particularly high among services, technology and manufacturing industries."

However, companies are worried about finding the right people for their new posts, with 53% of UK firms citing skills shortages as the biggest challenge they faced this year, compared with just 27% in the US.

The study involved HR directors at 1,100 companies across Europe and the US.