New employment legislation and proposed rises in National Insurance contributions should be suspended to allow the economy to recover, according to the head of a major recruitment group.

Many businesses would like to employ more IT contractors and other staff but see too many barriers in their way and too many risks to make it worthwhile to do so, claims Alistair Cox, the chief executive of recruitment group Hays, in an article in the Daily Telegraph.

Mr Cox feels that legislation such as the Agency Workers Directive will dissuade businesses from taking on staff, as will the proposed rise in employers' National Insurance (NI) contributions.

Earlier this week, the Recruitment & Employment Confederation stated that the NI rise would "certainly reduce" the number of IT contractors and other workers that employers take on.

With eight million Britons "economically" inactive, it is clear that Britain needs to change its attitude to ensure a prosperous future, Mr Cox says.

In Hays' Manifesto For Employment, the recruitment group also asks the government to provide a better higher education system.

Hays feels that many employers are expected to employ graduates even though they do not have the requisite skills.