Contractor pay on the rise despite uncertainty

(2 minutes to read)

The latest Recruitment and Employment Confederation’s Report on Jobs has revealed a mixed bag for both contractors and permanent workers.

The number of people placed into permanent roles fell for the fourth time in the past five months, whereas temp billings expanded, albeit marginally.

The latest KPMG and REC (Recruitment & Employment Confederation), UK Report on Jobs signalled that hiring trends remained subdued across the UK amid ongoing Brexit-related uncertainty.

Despite this, contract/temp wages increased at the quickest pace for six months during May.

The nursing/medical/care sector saw the sharpest rise in demand, with marked expansion in vacancies also seen for hotels & catering.

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Neil Carberry, Recruitment & Employment Confederation chief executive, commented, “Overall, though, the survey again shows what uncertainty does to hiring plans. Total permanent placements fell again this month while temporary billings grew only marginally. Recruiters are reporting that demand for staff is slowing and their clients are reducing business activity on average. Worryingly, these trends are most pronounced in key sectors like retail and construction.”

James Stewart, Vice Chair at KPMG, added, “Brexit uncertainty continues to dampen the jobs market as companies kept their recruitment decisions on hold in May.

“We expect the labour market to remain in stalemate over the summer as the contest for a new Prime Minister kicks off. Companies are unlikely to make any dramatic investment decisions until a new leader is in place and have more insight on the future direction of Brexit.”

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