A new survey of 1,000 recruiters shows that recent fast-paced growth in employment could be about to slow.

Research by HR group CIPD, published on Monday, revealed that recruitment intentions remained positive but the rate of improvement had “slowed significantly”.

Gerwyn Davies, CIPD labour market adviser, said: “Employment growth, normally a lagging indicator of recovery, seems to have preceded the stronger signs of growth we’re now seeing.

“So it is unsurprising that employment intentions are now dipping just as economic growth seems to be taking hold, with employers needing to tackle the major productivity hangover affecting the UK economy.”

The research also held potentially bad news for people expecting pay rises, with 71 per cent of respondents expecting to award increases of two per cent or less this year.

“Weak productivity partly explains why a majority of employers expect to continue awarding below inflation pay rises for their workforce,” said Mr Davies.