CONTINUING gloom in the manufacturing sector will see job prospects in the North-East remain disappointing over the next few months.

The news from workforce recruiter Manpower's quarterly survey of employment prospects (QESP), reaffirms the view that manufacturing in the region is stillstruggling to see the light at the end of the tunnel.

The survey, which has been conducted for the past 30 years, is widely used in Government and industry as evidence of labour market activity. It is recognised as one of the most accurate predictors of employment trends.

The results show that although the North-East's year on year jobs decline has begun to slow down, local employers are unlikely to take on any new staff in the first quarter.

Liz Kennedy, a local employment expert from Manpower, said: "The outlook for jobs this quarter is fairly miserable, but perhaps there is light at the end of the tunnel.

"Employers are beginning to retain more staff compared with this time last year, which is positive news."

The North-East is below average in the UK, and nationally Manpower's survey points to continuing employers confidence with job prospects stronger than a year ago, and showing steady growth in the long term.

This confidence is seeen in the Yorkshire and Humber region where job prospects will continue to rise.

The healthcare sector in particular is expecting a significant increase in vacancies, but again there has been a significant decline in employment prospects from the final quarter of last year.

Mrs Kennedy added: "The outstanding improvements in job opportunities has lifted Yorkshire and the Humber from eighth position a year ago to equal second today.

"The market is certainly buoyant and excellent opportunities exist, particularly in healthcare, telecommunications and insurance."

Ian Herbertson managing director at Manpower said: "All the signs point to achieving the holy grail of full employment.

"The problem now appears to be that skilled candidates are in short supply.