Government departments are well and truly out of caretaker mode and are preparing to increase staff levels, according to a new report by recruitment firm Hudson.

The results of the latest Hudson Report found that ACT hiring intentions have rebounded strongly.

The results of the Australia-wide survey of 4709 employers from the public and private sectors showed that a net 44.7 per cent of employers were planning to increase permanent staff levels over the next three months.

Hudson reported that the demand for public sector staff had returned “very rapidly”. Hiring intentions amongst government employers surged 24.2pp from the last quarter and a net 39.4 per cent of employers said they were planning to increase their permanent staff levels over the next three months.

Hudson ACT general manager John Henderson said the job market was growing at its fastest rate in five years.

“With the strong hiring sentiment reflected throughout most markets, employers are having to compete for staff, and candidates are once again able to have some bargaining power when it comes to their wages,” Mr Henderson said.

In the public sector, there is increased demand for core skills, including ICT, accounting, finance and office support, he added.

“Skills shortages are being felt across the vast majority of Federal agencies, with the main areas for concern being ICT, accounting and finance and financial management,” Mr Henderson said.

“The absence of talent management programs to retain and develop valuable staff could be the largest risk for resourcing and talent identification in the ACT.”