A survey of 168 London-based businesses has shown a big increase in the number planning to take on new staff.
The survey, by the Confederation of British Industry and KPMG, found that 61% of companies plan to recruit workers, up from only 16% in June 2012, while 21% of firms planned to make redundancies, down from 31% in June.
These figures are close to pre-recession norms, suggesting that London may be getting closer to putting the downturn behind it.
However, companies were not so confident about the prospects for the broader economy: 40% were optimistic about the economy over the next 6 months compared to 22% that were pessimistic.
Both figures were little changed from June.
Businesses were concerned about the effect of the European debt crisis and the wider world economic situation, and believed that the expansion of Heathrow airport was key to the continued success of London as a commercial centre.
“It’s really encouraging news for London that the hiring freeze seen earlier in the year has begun to thaw and more companies are now getting back to recruiting as normal,” said Sara Parker, CBI director for London.
“While firms are still cautious about the economy, 2012 has been an upbeat year for the capital and many firms are feeling buoyed by our Olympic success and are positive about London as a place to invest and do business.
“Now we need London companies to use the springboard of the Games to break into new high-growth markets.
“The support of the Mayor to promote the capital’s businesses around the globe will be crucial to this, but firms also want to see urgent action to improve airport capacity.”