Growth in permanent positions will outpace growth in temporary positions for the sixth year in a row, according to the “Employment Trends Survey 2018” released on Monday by the Confederation of British Industry (CBI) and recruitment firm Pertemps.

It found 42% of UK firms expect to increase recruitment for permanent roles over the next 12 months, and only 14% plan to decrease permanent recruiting for a net increase of 28%.

When it comes to temporary recruitment, on the other hand, 17% of firms plan to increase staff, but 17% plan lower levels of temporary recruitment for a net change of zero.

Overall, 45% of businesses expect to grow their workforces over the next 12 months — down from 51% in a similar survey in 2017, according to this year’s report.

The report is based on a survey of 350 business in the UK employing approximately 1 million people.

Other findings include:

• 48% believe the UK has become a less attractive place to invest and do business over the past five years, only 17% see it as more attractive.
• Access to skills is a key threat to the UK’s labour market competitiveness, according to 83% of respondents. In addition, labour costs were cited by 53%. Businesses are not optimistic that these threats will be tackled effectively in the years ahead.
• Ability to move UK workers across the EU was seen as a threat by 59%.
• 94% believe a flexible workforce is vital or important to competitiveness and the prospects for business investment and job creation.
• 70% of respondents aim to raise pay for their employees in line with or above inflation in the coming year; only 4% plan to freeze pay.
• 88% say achieving a diverse and inclusive workforce is important or vital to their future success.
• 44% reported maintaining high levels of employee engagement is a workforce priority in the coming year, closely followed by retaining talent at 43%.