One in three service sector firms in London will increase headcount over the next year, according to new research from recruitment and training consultancy Gordon Yates.

The research shows that 38% of employers feel positive on future prospects with a further 56% cautiously optimistic. More than half (57%) employers are thinking about recruiting full-time employees, while 25% are considering using temps and 18% contract staff.

Just 5% anticipate cutting staff numbers. Only 8% are worried about their company’s prospects in the forthcoming year.

Richard Grace, co-managing director of Gordon Yates, comments: “This is in sharp contrast to last year. The research and our day to day experience suggest that confidence is definitely returning to the London market.”