According to the CIPD’s most recent Labour Market Outlook (LMO) survey, more employers are planning to hire staff.

The findings of the LMO lends even more credibility to the recent claims that employment confidence has reached its highest level in over five years since the onset of the recession.

For the last six consecutive quarters, the job market has continued to grow. This signals good news for government ministers and jobseekers alike. Additionally, the net employment balance has increased from +9 to +14 since the spring. The net employment balance is the difference between the proportion of employers who plan to hire and those that plan to reduce staff.

In the private sector, positive changes continue, with a record high of +26 hitting in June.

Chief CIPD economist Mark Beatson describes this trend as "welcome news for job seekers and should hopefully reflect a degree of optimism about growth prospects for 2013."

He went on to say that the, "challenge for the increasing proportion of employers looking to hire will lie in finding the right talent to fill their vacancies."

Since 2008, turnover has declined steadily across most sectors and competition to recruit remains quite high. Employers are responding to this trend by implementing more flexibility and innovation into their recruiting endeavours and employee retention.

Despite the increased growth in the labour market, pay will likely remain below the rate of inflation and wage growth is not expected to accelerate.

However, pay may rise as the job market continues to improve and employers become more prepared to modify their workforce planning.