The CBI is expecting a good jobs market in 2015 with 50% of companies planning to take on extra workers. However, there is still a skills shortage which could mean that these positions do not get filled.
It is expected that all areas of the UK will benefit from an increase in jobs with Scotland being the area that will see the most. More permanent jobs are expected to be created than temporary ones.
Employers have also said that they will be happy to give pay increases, although they may not be that high as there is still a lot of competition and low productivity.
A selection of firms were polled as part of a survey by CBI and Accenture and 43% said that they would be giving pay rises in line with RPI at 2% and 12% said they would be above this.
After a six year decline UK workers will actually be seeing a rise in real wages where pay increases will be bigger than inflation.
The Deputy Director-General for CBI, Katja Hall explained that many companies have concerns that they will not be able to fill vacancies because of a lack of workers with the right skills. This is thought to be the biggest threat to the long term health of the economy.
The CBI has said that zero-hours contacts are an important part of the jobs market although unions have criticised them. This is likely to be hotly debated in the run up to the general election in May. Hall said that having flexible jobs means that companies can tailor their staff depending on demand and is crucial to the recovery of the economy. She also said that the living wage should still be voluntary as many firms just cannot afford to pay it.