Research by the Recruitment and Employment Confederation has shown that employers are relying upon agency and temporary workers in their recruitment planning, in both the short and long term. The latest Jobs Outlook collated by REC has shown that 88% of employers who took part in the survey would be keeping the current numbers of agency workers in employment and would possibly be increasing numbers, which is 2% higher than last month.
Roger Tweedy, Director of research for REC said:
“Again, our findings show the vital role agency workers are now playing in helping to sustain the fragile economic recovery and in providing a bridge in capacity until employers begin to grow their permanent workforces more significantly in the autumn. The current demand for agency workers is spearheading the jobs market and again reinforces the importance of a flexible workforce while the economic recovery continues.”
Following the results of last week’s election, employers are facing uncertainty and will be waiting to see how the Tory and Liberal Democrats coalition plan to deliver the correct economic conditions so that employers can further build their permanent workforce. Until employers are sure of the economy and the situation begins to stabilise, agency workers are set to play a key role in employment.
The Jobs Outlook survey also revealed that far less employers, 35%, are planning redundancies in the next quarter.
As the demand for agency and temporary workers increases, umbrella companies could find that they have an increased demand for their services, enabling contractors to maximise their take home pay. As the Conservatives and Liberal Democrats take their new positions in Downing street contractors and umbrella companies alike will be waiting eagerly for the review on IR35 legislation, which was promised by the Tories in the days running up to the General Election.
