Employers are becoming more confident about hiring and investing in their business, says a study by the Recruitment and Employment Confederation (REC).
The survey of 200 employers found for the first time since February they believed the outlook has improved in the last month. Bosses also forecast demand for permanent staff in the next quarter.
But employers remained gloomy about the wider economy, as companies restructure in reaction to the impact of the Covid-19 pandemic, said the report.
One in six made redundancies in the year to July 2020, up from 9% in the year to June, said REC.
Chief executive Neil Carberry said: "It's good to see employer confidence rising as the lockdown measures ease.
"Even at times like these, there are always opportunities out there for jobseekers. But businesses are still very worried about the overall outlook for the economy and, while some are hiring, many are having to make tough decisions around laying people off.
"It's too early to tell how quickly the economy will recover, but there are steps the Government can take to keep firms hiring and boost growth - including a more flexible skills system and a reduction in the Government's payroll tax, National Insurance, to reduce the cost of hiring.
"Equally, it's vital that we secure a good Brexit trade deal and deliver a workable immigration system on time to build up confidence and business investment here in the UK."
