CHICAGO, March 7 (Reuters) - The National Association of Manufacturers on Monday offered an upbeat outlook for the U.S. economy in 2005, saying employment was likely to expand while exports would remain stable or strengthen.

The annual survey showed 40 percent of member firms responding expect to hire more staff this year, up from 31 percent in 2004. More than a third said positions are currently going unfilled because of a shortage of qualified candidates.

One-third of respondents expected their exports to increase in 2005 while 40 percent said they would at least stay the same.

The survey of 3,000 NAM members generated responses from 976 firms.