Employers are becoming more confident about hiring expectations, according to new figures.

The Recruitment and Employment Confederation (REC) says more than three-quarters of recruiters plan to hire more people. It adds that this should have an inflationary effect on salaries.

Research by REC revealed 76 per cent of employers planning to increase headcount among permanent employees.

Separately, a report by REC and accountancy group KPMG shows recruitment consultancies placing more people in permanent and temporary roles in July.

Job vacancies were also up last month, with positions opening up at their fastest rate since January. Agency placements were at a five-month high, while temporary positions were filled at a rate not seen for seven months, said REC.

REC chief executive Kevin Green welcomed the figures but warned that the UK’s skills gap was the next problem that must be addressed.

“The UK’s post-recession problem is skill and talent shortages. The economy is going to be constrained by this ongoing talent crisis if employers keep doing business as usual. Hirers need to take on more young people and train and develop their employees like never before.

"Investing in staff development will help companies attract and retain talent. And our policy makers need to put politics to one side and take a sensible approach to immigration which focuses on helping British businesses get the skilled people they need.”