By Jonathan Davies

Businesses in the UK are taking on new staff at 'sky-high' levels, according to the latest report from accountancy firm BDO.

The firm's Business Trends Report employment index recorded a score of 113. Any figure above 100 indicates growth.

"The hiring intentions of UK firms are at 'sky-high' levels with figures stronger than the heady days of the mid-2000s boom," BDO said.

But the accountancy firm raised concerns about productivity in the UK. The reported found that the static level of workers' output per hour was "unique amongst advanced economies".

BDO partner Peter Hemington said that low productivity could impact on the UK's potential for growth.

He said: "Although employment growth in recent years has been strong, much of this has been in part-time jobs.

"Productivity ultimately determines our prosperity so it is a crucial area that must be addressed. Policy makers of all persuasions must take on this productivity puzzle".