Temporary billings return to growth

August has shown a renewed upturn in hiring activity, with temp/contract billings expanding at the quickest rate for 20 months.

The survey, carried out by KPMG and the Recruitment and Employment Confederation (REC), also revealed that the overall availability of workers continued to expand at a historically sharp rate during the last month.

Temporary vacancies increased across three of the ten monitored sectors, with Blue Collar seeing the strongest rate of expansion.

Neil Carberry, Chief Executive of the REC, said, “A return to growth on permanent placements and temporary billings is good news – though it is also expected, given we are comparing activity now with the lockdown.

“Temporary work is critical in any recovery – businesses turn to temps to help them ramp up and meet demand while the future looks uncertain. At the same time, it enables people to find work quickly. Past recessions show that temporary work bounces back more quickly – it is one of our jobs market’s biggest strengths and that’s really showing now.”

James Stewart, Vice Chair at KPMG, added, “It’s positive to see an uptick in hiring activity, particularly for temporary staff, which could mark a turning point with businesses appearing more willing and able to hire as more parts of the UK economy reopen.

“But with total candidate availability rising at a near-record pace, strong and sustained rises are needed to move the UK jobs market back to levels seen pre-COVID – and with concerns around a possible second wave of infections, the winding down of the furlough scheme and a Brexit deal outcome, there are still many challenges ahead.”

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