Eight in ten UK employers plan to take on extra staff this summer, in a further indication of the recovery in the economy and rising business confidence.

Research by the Chartered Institute of Personnel and Development (CIPD) found that 81 per cent of bosses intend to recruit this quarter, with 58 per cent of firms planning an overall increase in staff numbers.

A resounding 96 per cent of employers plan to take on full-time employees, while 52 per cent will be offering part-time employment.

Temporary and fixed-term contracts are being offered by around a third of those polled, a higher proportion than in the spring.

Four in ten firms expect to be employing more staff by the summer of 2005, with just 17 per cent predicting a decrease in employee numbers.

Recruitment intentions were highest in London and the South East.

The research is another encouraging sign that small firms have emerged from the slump of last year and are planning to expand over the coming year.

There are now an estimated 600,000 unfilled vacancies across the UK, although many employers are struggling to find skilled workers to fill these positions.

Although the general economic outlook is brightening, the lack of workplace skills has proved to be a continual problem for small businesses, despite new government schemes such as Modern Apprenticeships.

Dr John Philpott, of the CIPD, said that the economic recovery is gathering pace and the labour market is getting ever tighter.

“Despite this there is still no sign of an imminent surge in wage pressure. But with private sector recruitment increasing at a time of low unemployment, employers will have to remain on their guard to ensure that wage costs are kept under control,” he said.