Employment will grow steadily for the rest of the year, although the trend for increases in part-time and temporary jobs will continue, according to a new study.
The Chartered Institute of Personnel and Development (CIPD) said despite the positive outlook, hiring intentions in private firms has fallen back, countered by an improvement in the public sector.
One in four staff will be hired on part-time contracts in the coming weeks, a fall in the recent sharp increase in the trend, said the report.
A survey of 1,000 employers found that one in five plan to increase the proportion of temporary workers in the next year.
Temporary employees made up more than a third of the increase in staff numbers in recent months, with firms saying they wanted to lower short-term costs amid the uncertain economic outlook.
The study showed that the increase in the number of under-employed people, part-timers wanting a full-time job, will continue, but at a slower pace. Firms expect pay to increase by 1.7% in the next year.
Gerwyn Davies of the CIPD said: "The shift to more part-time and temporary employment looks set to continue to drive the jobs market further along the road to recovery.
"However, while this may drive up employment levels to reach new heights in the coming months, it may also continue to put downward pressure on the living and working standards of an increasing proportion of employees.
"Employers' focus on cost and risk will continue to squeeze wage growth for most employees, and may compel an increasing number of people to work fewer hours in less secure forms of employment.
"The sustainability of the recovery, supported by growing consumer confidence, may well depend on the extent to which firms are able to convert these part-time and temporary jobs into more full-time and permanent roles."