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Reported on Thu, 15 Jun 2006

Companies looking to recruit more staff are being deterred by the sluggish pace of UK growth, new figures suggest, but with the signs pointing towards a long-term revival, taking out a business loan could enable firms to increase employment and stay ahead of the game.

A new survey published by employment journal Manpower found that in eight out of nine major sectors, employers are aiming to increase recruitment, with agriculture the only area where the demand for new staff is low.

However, these aims are being undermined by the slow rate of growth within the manufacturing and retail sectors, where low profits have meant that bosses have been unable to invest in a larger workforce.

As a consequence, unemployment rates have risen by 0.2 per cent over the last quarter, bringing about a year-on-year increase of 0.6 per cent.

In spite of these figures, Manpower insisted that prospects on the horizon look "generally optimistic", with this autumn expected to herald a renewal of growth and employers tipped to realise their ambitions by increasing their workforce.

A business loan can be used to provide support for firms seeking to extend their recruitment policies in advance, at a time when long-term economic prospects look rosier.

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