Firms' recruitment set to slow

LONDON (Reuters) - Companies are less confident about recruiting new staff than at any time in more than two years, with the finance sector showing a notable decline, a survey showed on Tuesday.

The Manpower seasonally-adjusted employment outlook showed a positive balance of +10 percent of companies expecting to increase staff in the first quarter of next year, down from +12 percent in the current quarter and the lowest reading since the figure for the fourth quarter of 2005.

In unadjusted terms, the outlook balance fell to +7 from +13, its lowest level in six years and the largest quarterly fall in six years.

Hiring confidence was strongest amongst employers in the utilities sector. There was a significant weakening in the finance and business sector, suggesting the global credit crunch is taking a toll.

"The credit crunch, concerns about interest rates and house prices have been talked about for some months, making it a more uncertain time for both employers and employees," said Mark Cahill, managing director of Manpower. "These concerns appear to be reflected in hiring expectations."

(Editing by David Stamp)