Employment activity in Irish businesses is on the increase as conditions continue to improve, a new survey on the sector has found.

There has also been a decrease in layoffs, but a quarter of those surveyed have pointed to considerable difficulties caused by emigration in filling key roles.

According to the summer time business sentiment survey from KBC Bank Ireland and Chartered Accountants Ireland (CAI), there has been a "gradual improvement" in the employment landscape here, contradicting the findings of official GDP data.

The upturn is expected to continue over the coming months as a healthier level of confidence returns.

Some 440 questionnaires were completed last month, representing the views of the business sector from those in senior management roles.

"In contrast to recent official GDP data, the summer 2013 survey suggests the Irish business climate is continuing to improve – admittedly in small steps, but still in a clearly positive direction," said Austin Hughes, chief economist at KBC.

"The survey looks at the economy in a somewhat different way to national accounts data, comparing conditions across all sectors rather than trying to arrive at a summary numerical estimate of activity. Consequently, it presents a different and arguably more broadly representative picture of recent trends in Ireland."

Mr Hughes said that indicators of an upturn were evident across a number of sectors, with many firms reporting higher business volumes.

Pat Costello, chief executive at CAI, said companies were now playing catch-up following previous reticence.

“There were notably fewer layoffs and some increased hiring in the past three months,” he said.

“In part this reflects stronger conditions in domestic-focussed firms as these tend to be more employment intense. “