Economic uncertainty drives contractor hiring

A new report has shown that contractor demand is on the up, while permanent placements have fallen for the fifth consecutive month.

The latest KPMG and REC UK Report on Jobs, compiled by S&P Global, revealed that due to the current economic uncertainty, many firms have been hesitant to hire permanent workers.

Kate Shoesmith, REC Deputy Chief Executive, commented, “As hirers work out what variable economic forecasts might mean for their business and staff, it makes sense that we continue to see temp billings hold up so well.

“Temporary staffing ensures firms can continue to provide goods and services, and people can grow their careers – even when the economic outlook is unclear.

“The rising cost of living, plus difficulties attracting and securing suitably skilled staff are also driving increases in starting pay. It will be particularly important to watch for any early trends coming from this data on regional disparities in supply and demand in the labour market.”

Claire Warnes, Partner, Skills and Productivity at KPMG UK, added, “The current economic outlook continues to impact hiring activity as employers keep playing the short game by focusing on temporary hires, while permanent appointments fall for the fifth month in a row.

“Despite the rate of vacancy growth picking up to the best recorded in four months, candidate shortages remain, with recruiters citing hesitancy to move roles and longstanding, systemic skills shortages. Nursing, care and medical topped the rankings once again with the highest demand for workers – both temporary and permanent.

“These factors combined continue to play into pay inflation as employers try to compete with the rising cost of living.”

To find out more about contracting please contact Jessica on 01206 591 000 or email jessica.attwood@contractorumbrella.com.