THE number of North-East firms expecting to take on extra staff in the next three months has plummeted, according to a study.

The net employment outlook for the region over the next three months fell to ten per cent, compared to 27 per cent for the last quarter.

The survey, carried out by recruitment group Manpower, measures the proportion of firms preparing to recruit against those who are cutting jobs.

It is the lowest level of confidence among the region's employers since 2003.

The retail sector could be preparing to tighten its belt, after the slump in high street sales. Retailers were the least likely to be taking on more staff over the next three months, according to a report.

A survey of 2,100 employers by Manpower found that, overall, the UK jobs market will continue to be buoyant.

The sectors most confident they would be expanding recruitment were finance and business, followed by the construction industry.

Mark Cahill, managing director of Manpower, said: "The UK employment market has been well known for its resilience and stability and this picture looks set to continue.

"This is the first time in recent history we've seen such a fall in confidence from the high street, but it is too early to say whether this is a short-term blip or a more longer-term dip."