Contractor rates of pay at a four-month high

A new report shows that December’s hiring activity for both temporary and permanent roles fell at a softer rate compared to the previous month.

The latest KPMG and REC UK Report on Jobs also revealed that temp pay growth rates quickened, climbing to a four-month high.

Neil Carberry, REC Chief Executive, commented on the findings, “The slowdown in our labour market seems to be easing a bit. Given that December is a time when employers generally postpone activity into the new year, this is a positive sign that the labour market is weathering the current economic storm.

“Recruiters went into 2024 with hope that an upturn is coming, based on feedback from clients. Driving this economic growth would be a huge benefit for us all, leading to more successful firms, higher pay, and the ability to cut taxes and fund public services.”

Neil added, “But the growth must come first. The Chancellor has already set a date for the Budget – he should use it to set out steps that set firms free to grow the economy, from skills reform to regulatory change, including a more balanced debate on immigration for work and its impact on growth.

“Rising demand for healthcare staff emphasises again the importance of supporting NHS performance. Recruiters can see the impact of long NHS waiting lists in the supply of candidates looking for work – addressing this will be a key way to tackle inactivity.

“But the plan for NHS staffing needs to deal with 21st Century labour market realities. Medical staff have choices in and power over their careers – working with unions, agencies and other stakeholders on a plan will get the NHS farther than diktat from Whitehall.”

To find out more about contracting please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.