08.04.16
Increasing demand for temporary staff in the public sector
Demand for temporary staff is increasing in the public sector whilst demand for permanent staff is decreasing, the latest figures from the Recruitment and Employment Confederation (REC) show.
In March 2016, the latest month for which figures are available, the public sector scored 53.8 for temporary vacancies on the Job Vacancies Index.
The index, based on a survey of demand for staff at recruitment consultancies, indicates a higher number of vacancies than the previous month if the reading is above 50.
The public sector demand for temporary staff is at its highest since November 2015 and has never been below 50 during that time.
In contrast, the demand for permanent staff has only been above 50 once in that period, when it was at 50.4 at the beginning of the year.
However, it is now at 48.6, a small increase on 47 in February.
In contrast, the private sector has more permanent than temporary vacancies and more vacancies overall.
Its vacancy score has stayed above 50 throughout the past four months and is now at 66.2 for permanent staff and 60.6 for temporary staff.
However, the demand for permanent staff decreased in the past month from 67.6, whereas temporary vacancies increased from 58.8.
Tom Hadley, the REC’s director of policy, said: “While we expect jobs growth to continue overall, we are now seeing the effects of current uncertainty in the marketplace on UK employment.
“Global economic headwinds plus uncertainty around a possible Brexit make it likely that slower growth in permanent hiring will remain over the next few months as employers take a wait-and-see approach.
“In contrast, temporary hiring is on the up as businesses seek to meet increasing demand while retaining the ability to react quickly to any threats that might be around the corner.”
A National Audit Office report published in January found that government spending on temporary staff has consistently increased in the past five years.