BossFirms are becoming more cautious about hiring staff although the employment outlook continues to keep its head above water, according to two new studies.

Recruitment firm Manpower said a survey of 2,100 employers showed they were demonstrating a "remarkable resilience" given the state of the economy.

Managing director Mark Cahill said: "The jobs market is still in positive territory, having shown similar promise in the second quarter of 2012.

"When you're going head to head with a return to recession at home and a burgeoning eurozone crisis, by rights the jobs market should be in free fall, but that's not what we're seeing. Firms are still looking to hire albeit at a weaker pace than before."

Banks were hiring thousands of temporary workers to deal with the fall out from the miss selling of Payment Protection Insurance, said Manpower.

A separate report by the Recruitment and Employment Confederation (REC) and KPMG showed a modest rise in permanent staff placements during May.

REC chief executive Kevin Green said: "This month's data shows employers are becoming more cautious about hiring and while there is still growth in permanent placements, the figures have been getting weaker over the last two months. Clearly the economic backdrop and the eurozone crisis are making some employers think twice before taking on new staff."