FIRMS are upbeat about recruiting new staff in the New Year - especially in the financial services sector, a survey says.

A survey of 1,700 employers by recruitment specialists Manpower revealed that one in five planned to take on workers in the first three months of 2007.

Employers in the North East were most optimistic, while utility firms across the country were also confident about hiring workers.

Mark Cahill, managing director of Manpower, said: "Employers across all regions of the UK and almost all industry sectors are optimistic about their hiring plans for the start of the year - which is great news for a healthy start to 2007.

"This of course brings the challenge of being able to recruit quality staff.

"The UK has particular shortages of skills in a diverse range of industries, such as sales, driving and skilled trades, which makes recruitment a challenge for many companies. This trend shows no real signs of abating.

"This is a particular issue in the financial services sector and many employers will be asking where they will find these staff."