JOB prospects continue to improve in the UK, but employers are finding it difficult to recruit skilled staff, according to a report.

A survey of 2,500 companies by employment group Manpower showed business sectors are showing widespread confidence but one-in-five companies are facing shortages of skilled staff.

The recent enlargement of the European Union may provide a wider labour pool for UK companies to help tackle the problem, providing employers with the opportunity to recruit from new pools of labour in new member states, said Manpower director Hazel Detsiny.