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Businesses in London expect to start hiring as normal in the next six months, after a period of only taking on essential recruits in the first half of 2012, according to the latest CBI/KPMG London Business Survey.
This found that of 168 London companies, 61% plan to hire as normal in the first half of 2013, compared with only 16% who said this earlier this year.
The numbers reporting a recruitment freeze fell from 51% in July to 31% in December. Those making redundancies shrank from 31% to 21% over the same period.
Although firms remain cautious about the economy, 40% of those questioned feel more optimistic about economic prospects over the next six months.
“It’s really encouraging news for London that the hiring freeze seen earlier in the year has begun to thaw and more companies are now getting back to recruiting as normal,” said Sara Parker of the Confederation of British Industry.
“While firms are still cautious about the economy, 2012 has been an upbeat year for the capital and many firms are feeling buoyed by our Olympic success and are positive about London as a place to invest and do business.
The survey also identified the top strengths London has to offer which includes access to global markets, skills and talent pool, as well as proximity to customers and clients. But the availability and affordability of housing were named as one of the capital’s main weaknesses.