Temporary workforce in higher demand

A new report shows that 2023 saw a significant rise in the number of contractors and other temporary workers on assignment in the UK.

Last year, on any given day, 1,058,300 temporary or contract workers were on assignment – up from 976,400 compared to the previous year and an increase of 8.4%.

The REC’s latest Recruitment Industry Status Report (RISR) is research covering 2023/24 and is based on final performance by firms in their last full financial year. It shows the performance of the recruitment industry amid tough economic headwinds, and the essential nature of the UK’s world-class temporary labour force to hopes of an economic recovery.

Although the estimated 22.6 million temporary or contract placements in 2023 is 12% down on 2022, the number of temps or contract workers on assignment on any given day is offset by the increased length of assignments – which has grown from an average of 15 weeks in 2022 to 22 weeks in 2023.

Neil Carberry, REC Chief Executive, said, “At the end of a year where many businesses have had to work especially hard to make the numbers add up, it’s good to be reminded of the great work that talent, staffing and recruitment businesses do, While the total contribution to Gross Value Added dropped a little, the scale of our contribution, at £44.4bn last year, is still colossal, especially when you appreciate the growth and opportunity for workers and companies that this represents.

“At a time when people need to build their career, and with new regulation on the horizon, today’s report is further proof that #TempworkWorks.

“Temporary work continues to provide essential flexibility for businesses and valuable opportunities for workers, offering both the chance to gain experience and access to specialised roles, no matter how difficult the economy has been and remains.

“A million people went to work as temps this morning, and surveys show they value the choice and opportunity this represents – often choosing it over direct employment because of its benefits. A vibrant flexible labour market is a precondition of growth and opportunity. We need to make sure new regulations protect the opportunities temporary and agency workers have – as well as the growth they enable.

“A temporary workforce the size of a major city’s population is relying on the government to make pro-job, pro-growth decisions after a rough Budget for business. Working with the recruitment and staffing sector, which generated Gross Value Added (GVA) of £44.4 billion last year, is crucial for anyone hiring and also for advice on retention strategies, training and inclusive recruitment practices.”

Neil added, “The last year has been a difficult one for the recruitment industry with clients holding back while they awaited lower inflation and interest rates, an election and the right signals on growth. While the demand for permanent roles was strong as we exited the pandemic, figures now reflect a lull in demand as we wait for the economy to find its footing.”

To find out more about contracting please contact Lauren on 01206 591 000 or email lauren.monks@contractorumbrella.com.