More than half of businesses in the UK (51%) are looking to grow their workforces over the next 12 months, according to a survey from the Confederation of British Industry and Pertemps Network Group.

The survey, which polled approximately 300 businesses in the UK and was carried out between August to October 2017, also showed that confidence is highest among small and medium-sized employers, with a balance of +58% of them expecting to add jobs in the coming year. Growth is expected across all job types, with positive balance scores for permanent (+35%), temporary (+12%), graduate (+18%), and apprenticeship positions (+42%).

The survey added that, while nearly half of respondents (45%) anticipate there being no change in their levels of hiring for temporary positions in the next 12 months, a balance of +12% this year expect to offer more temporary openings. CBI and Pertemps state that this increase is significant as temporary roles can offer a first step into the labour market for young people or those who have been out of work for an extended period. They can also, however, be a warning sign that some businesses expect short-term demand, but do not have the confidence to hire on a permanent basis.

Meanwhile, 52% of businesses are aiming to raise pay for their employees in line with, or above inflation in 2018. Survey data also showed that 99% of respondent businesses believes a flexible workforce is vital or important to competitiveness and the prospects for business investment and job creation.

CBI and Pertemps’ survey also suggested that uncertainty around Brexit and skills shortages are weighing on business leaders’ minds. Concerns around these issues are contributing to a softening of business confidence in the attractiveness of the UK labour market. Results published in the survey showed that 63% of respondents expect the UK to be a less attractive place to employ people and invest in the next five years, up from 50% last year and 25% in 2015.