More than 40 percent of major companies that took part in a recent survey said they plan to increase the recruitment of workers fresh out of school next spring, according to a report compiled Wednesday by Kyodo News.

These findings reflect a pickup in Japan's business activity, which is encouraging firms to boost employment in a bid to expand operations and become more competitive.

Sixty-seven, or 42.7 percent, of the 157 firms surveyed plan to increase their recruitment of students when they graduate from school in March 2005.

This represents a steep increase from the 24.7 percent that said they would do so in the April 2003 survey, which involved 150 companies.

Toyota Motor Corp., which is thought to have become the first Japanese manufacturer to post a group net profit of more than 1 trillion yen in fiscal 2003, plans to employ 2,030 workers straight out of school next spring, up by 130 from a year earlier.

This would be the first time for the company to hire more than 2,000 new graduates in six years.

The 67 companies that said they would hire more also include electronics makers benefiting from swelling sales of digital appliances, such as Hitachi Ltd., Matsushita Electric Industrial Co. and Sharp Corp.