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Contractors will continue to play a vital role in keeping businesses going while adjusting to the ‘new normal’, say the Recruitment and Employment Confederation.

The REC’s recent JobsOutlook survey found that employers’ confidence in making hiring and investment decisions rose to net: +17 in the three months to January.

Hiring intentions remained highest for temporary workers in the short term, at net: +28, and +19 in the medium term.

Neil Carberry, Chief Executive of the REC, commented, “As we entered 2022, activity in the UK jobs market continued to surge. With the worst of the Omicron wave behind us, employers feel a little more optimistic about the state of the economy. And the majority are desperate to hire, and not just permanent staff. Temporary workers are in high demand as businesses try to kick-start this year’s growth.

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“But there is a huge participation gap in the labour market right now. Firms must make workforce planning their number one priority. That means putting serious effort into attracting candidates from a wider variety of backgrounds, training workers to fill the gaps, and retaining their best talent. Hybrid and remote working will be one part of that – we know that more workers are demanding it. But other benefits, conditions and development opportunities are also vital parts of a successful people strategy.

“Government must play its part too by urgently overhauling the skills system – including broadening the apprenticeship levy. Politicians must ensure we are building the skills base the UK will need in the future. Without it, we cannot hope to level up the UK economy in the long term.”

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

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