The Olympic Games will have a positive impact on employer hiring intentions in London, a new study has found.

The latest Manpower Employment Outlook Survey shows that more businesses in the capital are planning to increase rather than reduce staffing levels in the next quarter.

The recruitment firm noted that whilst many of the jobs created would be temporary in nature, "the Olympic effect" could benefit the UK economy in the long term.

Said Mark Cahill, Manpower UK's managing director, "The upswing in positive sentiment among employers in London is very encouraging.

"We are seeing thousands of positions become available thanks to the Olympic Games. Whilst it's undoubtedly true that many of these jobs will be temporary lasting only for the summer, we shouldn't underestimate the impact that an upturn in attitude can have on the psyche of the nation as a whole. This Olympic effect could well help drag us out of recession and into recovery."