Temp billings continue to rise sharply

Latest figures have shown that temp billings have continued to rise sharply, while permanent placements see a further drop across the UK.

The recent UK Report on Jobs survey, compiled by the KPMG and REC (Recruitment and Employment Confederation), revealed that the pandemic and the second national lockdown weighed on recruitment decisions across the UK during November.

This resulted in permanent placements falling for the second time in a row, yet due to a stronger preference for short-term hiring, temp billings saw a marked rise with demand growing for the fourth month in a row.

Neil Carberry, Chief Executive of the REC, commented, “With lockdown measures in place in England last month, the slowdown in both demand for and placements of permanent staff is unsurprising – although the scale of it is much smaller than earlier in the year.

“Feedback from REC members indicates that employers are still looking to hire, with a lot of demand for permanent staff displaced to January as firms hope the COVID crisis is easing. For now though, temporary work continues to help businesses operate and people find jobs – some positive news as we head towards Christmas.”

James Stewart, Vice Chair at KPMG, added, “The continual reluctance to recruit permanent staff and a further marked increase in people available for work, leaves the UK jobs market teetering on a precipice.

“However, looking ahead, there is reason for optimism with the welcome vaccine news, although challenges remain as the recent lockdown, new tier system and impending Brexit means it will be a long road back to the UK jobs market seen pre-Covid.

“While the extension of the furlough scheme may give the Government some breathing space, it needs to continue to support UK business and offer jobseekers the means to retrain and upskill, helping the recovery in jobs and reviving the UK’s productivity growth.”

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