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9 out of 10 employers set to focus on temporary workforces in next quarter

News | Temporary employees | New study | Short-term staff

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Nine out of ten employers (89 per cent) are looking to increase or maintain their temporary workforce in the next three months, a new study has indicated.

Research from the Recruitment and Employment Confederation (REC) found that the percentage of businesses turning to short-term staff in April jumped by nine percentage points compared to March (80 per cent).

These figures suggest that companies are becoming more dependent on temporary employees, seemingly due to a drop in the availability of strong candidates to fill permanent vacancies.

Some 89 per cent of employers are looking to strengthen or maintain their temporary workforce as the UK sees a drop in the availability of suitable candidates, research shows.

A shortage of available candidates was also shown in this month’s JobsOutlook survey, which found that 33 per cent of respondents said they have no spare workforce capacity in their organisation.

What’s more, 46 per cent said they believe they will encounter a shortage of candidates to fill permanent roles in the next year. The construction, engineering and technical sectors were among the most in need.

The study found that, of those who use temporary workers, 65 per cent utilise them to manage peaks in demand, whereas 57 per cent require them to respond to growth and 48 per cent say they wish to provide access to vital strategic skills.

More use of temporary workers may result in a financial burden for some companies, with 19 per cent suggesting that agency employees earn more than permanent staff in the same positions.

REC chief executive Kevin Green said: “Faced with chronic skills shortages, some employers are giving up on trying to fill permanent vacancies, and instead looking for temp resource to ensure they have the manpower needed to meet demand.

“For jobseekers this means there are opportunities out there to boost earnings, because employers are prepared to pay a premium for people to fill vacancies on an interim basis.”

Mr Green went on to say that temporary work could be a more appealing option for people as a result of increases in inflation and poor pay growth.

He explained that employers are addressing the skills shortage more urgently as it threatens to have a negative impact on the UK jobs market.

No matter who forms a government after the general election, action must be taken in order to improve employability for young people and boost inclusion among underrepresented groups, Mr Green noted.


SOURCES
https://www.rec.uk.com/news-and-policy/press-releases/employers-could-turn-to-temps-to-plug-skills-gap-rec

Posted by Jon Aspinell on 26th May 2017

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