The number of companies looking to take on new staff this quarter has dropped to a six-year low, according to recruitment specialist Manpower.
Figures from Manpower’s recent employment outlook report reveal a cautious labour market.
Out of 2,000 companies surveyed, only 13% of employers plan to take on more staff, with six per cent looking to reduce capacity this year.
Mark Cahill, managing director at Manpower, said the fall was due to financial worries.
“The credit crunch, concerns about interest rates and house prices have been talked about for months, making for a more uncertain time for employers and employees,” he said.
Mr Cahill urged employers to concentrate on retention.
“The challenge for employers in 2008 is to recruit and hold on to the right people,” he added.