Temp jobs boom as bosses halt hiring freeze

This is an article by Liz Barclay – read the complete article at https://business111.com/news

After nearly two years of bad news, Britain’s jobs market may finally be turning a corner. Temporary hiring is gathering pace, wages are picking up and employers are slowing the relentless cuts to permanent recruitment. It is far from a full recovery, but for millions of jobseekers it offers a welcome glimmer of hope.

For small firms, the rise in temporary work also offers much-needed flexibility when higher employment costs and economic uncertainty continue to make permanent hiring a gamble.

Rays of hope for jobseekers?

The latest KPMG and Recruitment & Employment Confederation figures show temporary placements rising for the fourth consecutive month, while the decline in permanent recruitment has finally stabilised.

There are still warning signs. The number of people looking for work has increased for 41 consecutive months, unemployment stands at 4.9 per cent and vacancies have mostly been falling for four years. The boom in temporary work may therefore reflect employer caution rather than a return to confidence.

Temp work booms

Temporary hiring is growing at its fastest rate since early 2023. Employers remain wary of committing to permanent staff amid higher employment costs, Employment Rights reforms and uncertainty about future demand.

For small businesses, that flexibility can be invaluable. Temporary workers allow firms to bring in people when needed without taking on the long-term costs of permanent recruitment.

Permanent jobs stabilise

After 45 months of decline, permanent placements have finally stabilised. Recruiters say businesses remain cautious, but new projects are beginning to encourage some employers back into the jobs market.

Pay starts rising

Starting salaries have reached their highest level in six months as shortages of skilled workers push wages higher.

That’s good news for employees but potentially painful for small employers. Higher wages come on top of increased employer National Insurance and other rising operating costs, with labour-intensive sectors such as retail, hospitality and care particularly exposed.

Cautious optimism

This isn’t a full-blown jobs recovery. The growth of temporary rather than permanent employment shows businesses remain nervous.

However, after nearly two years of gloom, there are finally signs of movement. For jobseekers it means more opportunities, even if many are temporary. For small businesses it provides greater flexibility while uncertainty remains.

The jobs market may not have turned the corner yet, but at least it appears to be approaching it.

This is an article by Liz Barclay – read the complete article at https://business111.com/news

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