Australian employers are on the hunt for quality staff, according to a report finding employer confidence at its highest point in 18 months.

Global recruitment consultancy Hudson’s latest report says 31.5% of Australian employers intend to increase permanent staff hires between now and June, with mining and IT particularly buoyant.

A separate survey by consulting firm Mercer says employees can look forward to bigger pay increases this year.

Its Market Issues Survey forecasts an average fixed pay increase of 4% over the next two years, compared to 3% last year and 5% before the global downturn.

“A resurgent jobs market means employers need to retain staff, so they are feeling the pressure to increase salary budgets,” Principal Martin Turner said.