Temp billings rise for second month in a row

A new survey shows that while permanent placements fell, temp billings rose as firms look for flexibility in their workforce.

The latest KPMG and REC UK Report on Jobs revealed a cautious hiring environment across the UK during October, with economic uncertainty a main factor for the thirteenth successive monthly reduction in permanent staff hires.

At the same time, hiring in the contracting sector saw a back-to-back rise, as well as an increase in rates of pay.

Neil Carberry, REC Chief Executive, commented, “In many ways, the labour market is marking time waiting for the brakes to be taken off growth by the Bank of England.

“While permanent hiring is now declining more softly, temporary hiring continues to pick up the slack – with billings gently growing for most of this year on the back of rising wages.

“While the rate of pay growth has now returned to more normal parameters, it is still strong, especially in sectors where staff remain in short supply. That sectoral split is ever more pronounced, with challenging sectors like construction and IT sitting in a very different place to hospitality and healthcare, which continue to be affected by shortages.”

Neil added, “Looking to the Autumn Statement, businesses and Government need to be aware that the return of growth will reveal shortages more widely – action on skills, welfare-to-work programmes and immigration reform will be needed to prevent a return to growth being squandered.”

“Healthcare providers are ramping up their hiring ahead of the winter, but candidate supply is short. Agency medical staff are keeping wards open and getting patients treated – they need a bit more support from Government.

“Reforming capped on-framework agency rates so pay for temps working on-framework can rise for the first time in four years will save Government money as they will end up using far fewer emergency shifts, and it will reward a part of the NHS workforce that is too often overlooked.”

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