Hiring outlook lowest for six years

UK companies expect to take on staff at the slowest rate in six years following the economic downturn, recruitment company Manpower claims.

The balance of those looking to hire rather than fire over the next quarter was down by almost half on the same period in 2007, with financial and business services firms the most pessimistic.

"People are a bit concerned with what they are seeing from the financial market and the outlook for the economy," said Mark Cahill, managing director of Manpower UK.

"Most people are still looking to employ more people," he added. "It's just not as high or as optimistic as it has been."

Many companies in the investment banking sector have already started trimming jobs, with Bank of America, UBS and Dresdner Kleinwort leading the way.

The Centre for Economics and Business Research predicts a total of 6,500 City jobs will go in 2008.