Businesses are expecting to increase staffing levels to the highest level in almost two years, in a sign that the recession may already have ended.

Companies have started the year on a more buoyant note after the UK economy contracted at the end of 2023, according to Lloyds Bank’s latest Business Barometer.

Confidence has remained well above average in the first two months of 2024, although it slipped two points from January to 42pc.

Meanwhile, businesses are the second-most optimistic about their trading prospects and the economy at any point since April 2017, amid hopes that interest rates will soon fall.

The improving outlook among companies comes as employers scale back plans to cut staff to the lowest level since 2017.

For workers weighing up a move there is good news too, as around half of bosses plan to expand their workforces in the year ahead.

The difference between those planning to hire and fire means staffing expectations are at their highest level since May 2022.

Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “This month’s data still reflects a positive mood among businesses despite a marginal fall in overall confidence. Firms appear to be upbeat about their prospects and the economy, supporting their positive staffing expectations.” 

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