REC Finds Permanent Placements Up But Temp Jobs Affected By AWR
Written by Geoff Newman on 4/11/2012
The newest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs has shown that permanent staff appointments are still rising – although temporary placements decreased significantly.
The number of people placed in short-term jobs fell in March at the fastest rate for two-and-a-half years. Measure on a scale where anything above 50 represents an increase, temporary hires fell to 48.5 last month, from 49 in February and down by 7 per cent since the new Agency Worker Regulations came into effect in October.
Many of the employers surveyed for the report said that many temp workers had been converted to permanent staff members in light of the regulations.
The REC’s Tom Hadley, said that vacancy growth was now at an eight-month high, indicating promising options for job-seekers and increasing employer confidence.
“Recent tax changes announced in the Budget, the Youth Contract and reductions in red tape for businesses, that came into effect this month, should further boost employer confidence and accelerate hiring activity,” he explained.
“[The declined in temporary worker appointments] may in part be linked to employer uncertainty over the Agency Worker Regulations, although it could mainly be due to the fact that increasing business confidence has resulted in more employers being prepared to take on permanent hires rather than temporary or contract staff.”