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REC Report Shows Falling Temporary Worker Demand

The new Report on Jobs report has been revealed by the KPMG and the Recruitment and Employment Confederation (REC). It shows that whilst permanent job vacancies continue to grow, billing for temporary work has dropped significantly, with May seeing particularly heavy falls.

For recruitment agencies keeping their eyes on the market, it seems that temporary workers may be facing difficult times ahead. Permanent job vacancies grew during May, though at their slowest rate for five months. However, the temporary jobs market declined for its sixth consecutive month, with the added disappointment that the rate of decline was the fastest noted since July 2009. Overall, the demand for staff still rose during May, but at the slowest rate that has been seen for four months.

Though the demand for engineers and IT specialists remains, especially in the Midlands - which noted a considerable surge in performance - there have been significant drops for temporary staff needs. Though the REC’s Job Index figures for IT in April and May 2011 were 60.5 and 56.4 respectively, April 2012 saw a figure of 53.5, which dropped further in May to 49.2.

Kevin Green, the REC’s chief executive, said: “The temporary staff market has been contracting for the last six months; however, it’s important to note that there are still over a million people per week working flexibly. Employers value the ability to flex their staffing costs based on current and future demand.” The trend will be important to note for recruitment agencies trying to find positions for their staff over the coming months. 

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