Political uncertainty leads to increase in number of companies hiring temporary staff
The high level of uncertainty brought about by the EU membership referendum has led to an increase in the number of companies that prefer to take up temporary staff rather than creating permanent roles, the Recruitment & Employment Confederation’s (REC) latest Report on Jobs has been able to suggest.
The research paper revealed a seasonally adjusted index reading of 59.1 for the billings received by agencies from temporary and contract staff in April. This was up from 56.4 the previous month, and represented the fastest growth in more than a year. Vacancies for temporary positions also grew at a sharper rate than in the previous month.
The confederation said economic uncertainty ahead of next month’s leave or remain vote was a key factor behind the trend.
“Our members are telling us that employers are concerned about the referendum,” said REC’s chief executive, Kevin Green. “That is leading to a slowdown in the decision-making process for permanent hires and a significant switch to the use of contractors, temps and freelancers.”
Temporary staff provide a more flexible resource for employers that want to benefit from the strengthening economy but also want to be able to react to any downturn after the EU vote on 23 June, said Green.
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