Temp billings return to growth

Good news for contractors, as a new report shows that improved demand for short-term staff has resulted in a modest rise in temp billings.

According to the KPMG and REC’s UK Report on Jobs survey, companies remained hesitant to commit to new permanent hires due to ongoing economic uncertainty and efforts to control costs.

Data shows that during September, temp billings rose in all four monitored English areas – apart from the South of England. The quickest expansion was recorded in the capital.

Demand for temporary staff also saw growth in five of the ten employment sectors that are covered by the survey – nursing/medical/care reported the strongest rise in vacancies overall, while there was a sharp decline in demand found in retail and executive/professional workers.

Commenting on the findings, Neil Carberry, REC Chief Executive, said, “Employers tell us they are feeling better about themselves as the year moves on, and today’s data does suggest the possibility of a turnaround in hiring over the next few months.

“Permanent placements have been falling for a year now from abnormal post-pandemic highs. While permanent hiring activity continues to slow, fewer firms reported a slowdown last month, leading to a much shallower rate of decline than most months recently.

“Likewise, temporary hiring remains robust with billings growing marginally in September – as they have most months this year.

“This feels like a market that is finding the bottom of a year-long slowdown. And the relative buoyancy of the private sector is likely to be driving this more positive outlook – while vacancies are now dropping they remain robust in the private sector by comparison to the public.

“Some sectors such as hospitality, engineering, logistics and healthcare continue to experience very strong and growing demand. Along with high inflation, this is likely to be contributing to the growth of pay for temps and perms alike.

To find out more about contracting please contact Jaime on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.