BAE Systems is to open a recruitment office in Birmingham in an effort to hire some of the workers losing their jobs following the collapse of MG Rover.

The company revealed that Airbus, in which it has a 20% stake, had taken part in recruitment meetings at Longbridge.

CBI director-general Sir Digby Jones welcomed the move, which he hoped would lead to skilled workers remaining in the manufacturing sector.

Sir Digby, a member of the Rover Task Force, said he hoped that within a year most of the 6,000 workers at Longbridge who have lost their jobs would find other employment, albeit on slightly lower wages.

The business leader said he was heartened by the number of firms expressing an interest in offering jobs to Rover workers.

But he admitted that the outlook was less optimistic for the network of Rover dealers and predicted that many would go out of business.

Around 140 independent dealers faced a "grim" future, which could also hit apprentices.

Sir Digby said the Government had a responsibility to ensure that apprentice workers at dealers could continue their training.

The BAE move follows an announcement that Network Rail is planning to hold a jobs fair for former Rover workers, with hopes of recruiting up to 200 staff.