Most firms are planning to take on more permanent staff in the next few months, although worries persist about a shortage of skilled workers, according to a new report.

A survey of 600 employers found that 84% are aiming to recruit, with only 7% saying they will reduce their headcount.

The poll by the Recruitment and Employment Confederation also showed that one in four were concerned about a shortage of workers with “education and training skills”.

Chief executive Kevin Green said: “With employment levels at an all-time high and the economy strengthening, businesses will find it increasingly difficult to recruit new staff to increase their capacity.

“The priority now is to ensure that employers are able to recruit the talent they need. That means making it easier for businesses to employ workers from overseas and the UK remaining part of the EU.

“At home, we need to focus on improving our education system so that the next generation are equipped with the kinds of skills employers are calling for.”

Employment Minister Esther McVey said: “The UK labour market is getting stronger and there are record numbers of people in work, with full-time jobs accounting for 95% of the rise in employment over the past year.

“We will continue to stick to our long-term economic plan, which has helped enterprising businesses up and down the country to create jobs with two million more people working in the private sector since 2010.

“Behind these record figures, there are countless stories of individual hard work and determination and of families who are now feeling more secure over the Christmas period and beyond.”