Research shows 58 per cent of firms expect recruitment to rise

Some 58 per cent of European technology firms expect to increase recruitment in the next 12 months.

But the survey of 300 European chief executives and directors by Eurocom Worldwide, also shows that eight per cent of firms are planning to reduce staff numbers.

The strength of the current IT recovery is such that a skills shortage is now regarded as one of the most likely threats to the sector, says Jennifer Jansen, managing director of Eurocom partner Six Degrees.

'A slowdown in the global economy and further oil price increases are seen as the major threats,' she said.

The report also reveals expectations for increased job movement to China and India, but highlights divided opinions on the outlook for the US economy, with 21 per cent confident for growth, but 20 per cent who are much more doubtful.