The number of recruits joining the armed forces is up, but it is too early to say if the recession is driving people to join, defence minister Kevan Jones said.
The army, navy and air force are almost at full strength, according to the latest figures from the Ministry of Defence.
The figures, released in February, show the armed forces are at 97.2% of their full-time trained strength requirement.
This is up from 96.8% last quarter.
More than 20,000 new recruits joined the armed forces in the 12 months to December 31, up by 7.1% compared to the same period in 2007.
Mr Jones said: "Although we have heard anecdotal evidence to suggest that interest in armed forces careers has increased, it is much too early to say at this stage whether the current economic climate is having any effect on armed forces recruitment or retention."
The figures come despite a rising death toll in Afghanistan, where four more British service personnel, including one Gurkha, were killed on Thursday.
Recruitment techniques have also been overhauled, with internet and television campaigns becoming more prominent.
