EMPLOYERS across the North-East expect to take on more workers than the national average next year, according to a new report.

A survey from Manpower says the region's seven per cent increase in its employment outlook is higher than the five per cent UK average.

The figures, which are used by the Government and the Bank of England, asked more than 2,000 firms on plans to increase or reduce their workforce in the next quarter.

James Hick, Manpower Group Solutions' UK managing director, said the North-East was showing positive signs of new job creation.

However, he said there was still evidence of a skills gap, particularly in the engineering sector.

He said: “The region’s business climate is feeling more upbeat, and that confidence is reflected in the jobs market.

“Going into 2014, hiring intentions in the North-East are pulling away from the national average.

“Sunderland is seeing an overall increase across temporary and permanent roles, while in Newcastle the increase in hiring intentions is being driven primarily by temporary roles, with permanent roles still harder to secure.

“We are also seeing increased activity in the manufacturing sector, though while there is strong demand for engineers, there is evidence of a skills gap in this area, with employers struggling to fill roles.”