Businesses across the globe are now looking to hire new staff, in one of the first signs that global economic recovery and growth is on a sustainable upward trajectory, said a report.

Over a third of companies (36 per cent) said they intend to increase headcount, in a bi-annual survey by Regus Business Tracker, that interviews over 10,000 businesses around the world.

These findings are particularly significant, coming in the wake of recent IMF and ILO observations that global unemployment has reached record proportions in the last three years (up to 210 million since 2007).

These organisations have warned about potential problems for national economies if this trend continues. Unemployment reduces national taxation income and increases public spending, the report said.

The findings of the Regus Business Tracker provide important evidence that the world unemployment situation may be set to ease in 2011.

The survey canvassed the opinions of over 10,000 senior business people in 78 countries asking them about their current revenue performance, their profitability, their projected future revenues and their wider expectations of national economic growth.

These indicators form the basis for the report’s Business Optimism Index, which unusually reflects actual performance as well as near-term outlook. Globally, this edition of the index revealed a far more positive outlook, with a greater proportion of optimist countries than six months ago. This October the global index revealed a bullish rating of 98, up 4 points on six months ago.

“The intention to increase headcount is a clear indicator that businesses want to be prepared to grasp the opportunities that recovering markets may throw their way,” said Joanne Bushell, vice president for Regus Middle East and Africa, a leading provider of workplace solutions.

“The global optimism index also reveals a more positive outlook than six months ago as Western Europe, with the exception of Spain, becomes noticeably more optimistic. The USA can also boast an increase in optimism levels and in Asia, Chinese bullishness continues to rise. Mexico records a very slight inflection in optimism probably due to the unsettled security situation currently disturbing the country.”

“In spite of this optimism, our research also highlights that 41% of companies are still looking to reduce their overheads, through other means than reducing staff. This reveals a global attitude of cautious optimism,” Bushell added.

“As companies look to find economies in their own operations, we are likely to see more and more organizations offering flexible working practices to their existing or prospective employees in a bid to achieve a better work-life balance and run a leaner organization. In many countries we are seeing greater part-time working patterns which will be key to maintaining sustainable employment levels,” she concluded. – TradeArabia News Service