Employment is expected to rise in the coming months but at a slower rate than previously predicted.

A survey by recruitment specialist Manpower said employment prospects in all sectors across the UK were continuing to improve.

Of more than 2,000 companies questioned, 28 per cent planned to take on staff in the fourth quarter while ten per cent believed they would reduce employment levels.

Manpower UK managing director Iain Herbertson said the increase was less than expected.

He said: "All sectors and regions we surveyed were planning to increase staffing levels, but not at the pace we were expecting given the underlying strength of the UK economy and flexibility of our labour market, both of which support work creation."

In the build up to Christmas, High Street retailers were predicting a 34 per cent jump in jobs.

This was considerably lower than the 65 per cent rise the sector recorded a year ago.

Mr Herbertson said: "Prospects are up for the fourth quarter this year but not at the level we would expect for this time of year, indicating that retailers are bracing themselves for a fall in consumer spending."

The health sector was the strongest for jobs, with 38 per cent of employers planning to raise staffing levels between October and December.

That meant job prospects were now ahead 13 points year-on-year and had reached a ten-year high for the fourth quarter.

Prospects in the recession rocked manufacturing sector were also improving, up three points against the previous quarter.

Transport had the largest quarterly increase, ahead 19 points on the previous three months with a balance of 27 per cent.

Employment prospects in the financial sector remained poor and conditions remained uncertain.

Eight out of 11 regions were displaying greater optimism than the last quarter although only four were more optimistic than a year ago.

Manpower found the North-West was now at ten-year high with 22 per cent of firms planning to take on more staff.