Skills shortage results in employers relying more on contractors

(2 minutes to read)


Umbrella company contractors will be pleased to learn that more UK employers are becoming reliant on contractors and temps due to skills shortages.

The latest JobsOutlook report carried out by the Recruitment & Employment Confederation (REC) revealed that as many as 45% of UK employers are expecting a shortage of suitable candidates over the next 12 months.

The report suggests that many businesses may turn to contract workers to meet demand as permanent hiring becomes more difficult. Eighty seven per cent of employers intend to increase or maintain their use of temporary workers in the next three months, while 34% have no spare capacity and would need to recruit to meet additional demand.

REC chief executive Kevin Green, commented on the findings, “The majority of jobs created in recent years are full-time roles, but the data suggests that employers may need to bring in temps to fill vacancies because it’s so difficult to find candidates for permanent positions.   

"The pool of people without a job is shrinking, and the number of people deciding to switch jobs isn’t rising as much as we’d expect. Employers are improving starting salaries to attract candidates, but even with this incentive people are unsure about taking new jobs at a time of economic uncertainty.

He added, “In many cases businesses are bringing in temps with the intention of converting them to permanent staff once they’re in the business. This is an example of how employers are seeking solutions to the skills shortage. 

“Brexit is making the situation more challenging. In London for example, a third of people working in construction are from the EU and it’s difficult to see how firms will manage if their workforce aren’t encouraged to stay in the UK and continue to contribute to our economy.”

Daniele Cantello is an Contract Manager for Contractor Umbrella Ltd, one of the UK’s Most Respected Umbrella Companies. Learn more about Daniele on Google.

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