Almost one in five employers who took part in a recent survey predicted that they would be laying off workers during the last three months of the year.

The Manpower Employment Outlook Survey shows that 16 per cent of 650 employers questioned in the Republic expect to cut staff numbers during the last quarter of the year.

The study, compiled by the Manpower Skills Group, also shows that just 12 per cent of companies intend to hire new employees, indicating that there will be an overall fall in job numbers.

Manpower Ireland Ltd, the group's Irish subsidiary, said this was the first time since the beginning of last year that the number of employers expecting to lay off workers outstripped those who said they would be hiring staff. On an EU-wide level, Ireland and Germany were the only two countries that exhibited this trend.

Last year's figures showed employers were considerably more confident. Only 6 per cent were preparing to let workers go, while 24 per cent were planning to take on new staff.

Seasonal factors played a key role in employers' forecasts. One-third of those involved in agriculture, forestry and fishing said they would be cutting their workforces, while none of them planned to hire staff.

Similarly, 40 per cent of restaurants and hotels said they would be laying off workers, with just 13 per cent planning to increase numbers.

Construction also displayed a fall, with 14 per cent expected to lay off staff, and 8 per cent saying they would be hiring.

Business in Northern Ireland was more upbeat, with 18 per cent of the 200 companies surveyed there saying they planned to hire staff over the next three months, and just 5 per cent forecasting that they would be reducing the size of their workforce.