Employment prospects are looking more positive as firms bounce back from the US slowdown and the September 11 attacks.

Recruitment company Manpower reported 15 per cent more companies had said they were planning to take on additional staff between April and June, than those who were reducing numbers.

The group, which questioned 2,000 companies across 11 regions and 20 sectors, said the employment conditions were now in line with those seen in the first half of last year.

Every industry sector, except electronics, was expecting to take on staff in the immediate future, with hotels and restaurants most upbeat with a balance of 31 per cent expecting to recruit.

Firms in the food and beverage, transport and construction sectors were also expecting to increase numbers with a balance of around 20 per cent in each sector planning to take on extra staff.

Companies employing less than 49 people were most optimistic about staffing levels, with 19 per cent predicting they would be offering new jobs.

Employment prospects increased in all regions compared with the previous quarter and Wales, Scotland, Yorkshire and Humberside and the North, were now more confident than this time last year.

Iain Herbertson, managing director of Manpower, said: "Business seems to have bounced back from last quarter's downturn, when the impact of the US recession and September 11 hit employment prospects hard. We believe there is reason to be cautiously optimistic. But, for a full recovery, we need to see this optimism is maintained. The next quarter's figures will demonstrate if we are truly on the up."

There is growing concern about skill shortages, with manufacturing industries particularly worried.

Mr Herbertson said: "Training and development is essential to maintain the competitiveness of UK businesses and help maintain employment and economic prosperity in the UK."