As UK employers grapple with cost constraints and market uncertainty, they are continuing to fill gaps more often with temporary workers than permanent hires.
That’s according to the monthly UK Report on Jobs by KPMG UK and the Recruitment and Employment Confederation. The report showed the sharpest rise in temporary hiring since April 2023 and another decline, though slight, in permanent hiring.
The report’s Temporary Billings Index for June was 52.7, up from 52.2 in May and on the rise for four consecutive months. The Permanent Placements Index — the report’s main hiring measure — crept closer to the neutral level of 50, registering a reading of 49.1, up from 44.1 in May and in line with index measures earlier this year.
“Temporary and contract work once again leads the way, as firms react to demand without yet feeling confident enough to commit to larger-scale permanent hiring,” Neil Carberry, the REC’s chief executive, said in the report.
Pay also rose for permanent and temporary staff. The rise was attributed to employers’ efforts to attract skilled candidates. Even though the increase in starting salaries was the sharpest since January, pay growth for both permanent and temporary work remains below average in the UK, the report said.
The report is compiled by S&P Global from responses of about 400 UK recruitment and employment consultancies in June.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
