Hiring intentions among UK companies are now the strongest in a year, with fewer companies planning to cut jobs as the economic outlook has improved over the past three months, according to a report released on Monday by the Chartered Institute for personnel Development (CIPD).

According to the association's survey, 56 per cent of companies plan to increase their workforce in the coming months, up from 53 per cent at the end of 2020, but still down from 66 per cent before the outbreak a year ago.

The proportion of companies planning to cut jobs fell sharply to 20% from 30% in the previous quarter.

Healthcare, finance, education and IT have the strongest hiring intentions, while hotels are the weakest, which is being hit by the current blockade.

But CIPD said the unemployment rate could rise sharply if Mr Sunak, the chancellor of the exchequer, does not extend employment support for businesses in his budget on March 3rd.

The British Chamber of Commerce warned last week that 1/4 of member companies plan to cut jobs if government support is terminated and that they are still feeling the impact of the epidemic.