More temporary workers hired amid low confidence in economy, research finds
Redundancies, fewer job opportunities and concerns over job security have pushed up candidate numbers, according to the report
Employers are increasingly hiring temporary workers because of low confidence in the economy and greater cost pressures, according to new research.
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Recruiters reported falling demand for staff from companies in May amid a reduction in vacancies.
Data obtained by the Recruitment and Employment Confederation (REC) showed a big increase in the availability of candidates for jobs.
Redundancies, fewer job opportunities and concerns over job security reportedly pushed up candidate numbers, said the report.
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Neil Carberry, REC chief executive, said: “With businesses tapping the brakes on permanent hiring in the face of higher costs, the Gulf crisis and new employment red tape, temporary work is making up the gap.
“May saw its fastest rate of growth in years. This is a huge strength for workers and employers across the country, as it keeps the wheels turning in challenging times.”
Jon Holt of KPMG, which helped with the report, added: “Ongoing global and domestic uncertainty is making businesses more cautious and that is increasingly reflected in hiring decisions.
“While some employers are turning to temporary contracts to retain flexibility, many permanent hiring plans are being delayed or put on hold.
“Businesses need stability to plan and confidence to invest. With both still under pressure, the medium-term outlook for jobs remains subdued.”