UK firms increasingly hire temporary workers, recruiters report
12 reported
UK companies are increasingly hiring temporary workers instead of permanent staff due to low economic confidence and higher cost pressures, according to a report from KPMG and the Recruitment and Employment Confederation (REC). Recruiters reported a strong increase in offers of temporary roles in May, while permanent staff recruitment saw its quickest fall in 10 months. Political turbulence in the UK and the ongoing conflict in the Middle East were cited as factors discouraging permanent hiring. The report is based on a survey of 400 UK recruitment and employment consultancies conducted in mid-May. Redundancies, fewer job opportunities, and concerns over job security have increased the number of candidates applying for roles. Salaries for new workforce entrants and temporary workers rose only modestly in May compared with the previous month. The nursing, medical, and care sector was the only area to register higher demand for permanent staff, while retail saw the sharpest drop in permanent positions. Official figures showed the unemployment rate unexpectedly rose to 5% in the three months to March, with wage growth slowing.
What’s reported
UK companies are increasingly hiring temporary workers instead of permanent staff due to low economic confidence and higher cost pressures.
Recruiters reported a strong increase in temporary role offers in May.
Permanent staff recruitment recorded its quickest fall in 10 months in May.
Political turbulence in the UK and the ongoing conflict in the Middle East were cited as factors discouraging permanent hiring.
The report is based on a survey of 400 UK recruitment and employment consultancies in mid-May.
Redundancies, fewer job opportunities, and concerns over job security increased the number of candidates applying for roles.
Salaries for new workforce entrants and temporary workers rose only modestly in May compared with a month earlier.
The nursing, medical, and care sector was the only area to register higher demand for permanent staff.
The sharpest drop in permanent job positions was in the retail sector.
The unemployment rate unexpectedly rose to 5% in the three months to March, with wage growth slowing.
A government-backed report warned that the number of young people not working or studying surpassed a million for the first time in more than a decade.
Simon Wolfson, boss of retailer Next, cautioned that a “dramatic fall” in entry-level jobs is driving up youth unemployment.
Key figures
Neil Carberry, chief executive of the Recruitment and Employment Confederation (REC)
Simon Wolfson, boss of retailer Next
Jon Holt, of KPMG
Sources: The Guardian
