Skills shortages and the UK's looming divorce from the EU mean hiring optimism among private sector firms is at its strongest for three years, according to a report on the UK's employment outlook.

The survey of 2,100 firms - by employment firm Manpower - found construction and utilities firms were most bullish on employment prospects for the first quarter of 2017, despite general uncertainty over the country's future relationship with the bloc.

It suggested a rush for talent was under way ahead of potential Brexit barriers.

The study said the skills shortage was particularly acute in the building trade, with scaffolders and bricklayers being paid up to £24 an hour.

'We can solve the housing crisis in the UK'

Housebuilders shed or lost many key personnel abroad when work dried up in the UK after the financial crisis.


The shortage of skilled tradespeople has been cited by the industry as a factor behind the slow recovery in building to help ease the country's housing crisis.

The report said the biggest headache for employers was a shortage of suitably skilled workers, especially if Brexit makes it harder to recruit staff from other countries.

Pay growth slows following Brexit vote

The report found hiring in the public sector was expected to fall during the first three months of the new year as budgets remained constrained.

Mark Cahill, Manpower's UK managing director, said: "UK companies are going into 2017 hungry for top talent.

"Employers are still unsure about what exactly Brexit will mean, but are not letting that uncertainty deter them from hiring.

"Some employers may be looking to bring in talent while they can before any curbs to freedom of movement across the European Union come into effect, as more than half of all the jobs created by UK employers this year went to EU

workers."