The number of temporary employees in the UK increased by 0.6% on a seasonally adjusted basis to a total of 1.59 million in the three-month period from January to March 2018 when compared to the same period a year ago, according to the Office for National Statistics.

Temporary workers are self-identified when surveyed by the ONS, and they include those who are on fixed-period contracts, agency temp workers, casual workers, seasonal workers and others in temporary work.

Meanwhile, figures from ONS also showed that the unemployment rate was 4.2% for the same three-month period, down from 4.6% for a year earlier and the joint lowest since 1975. Overall for the period, there were 1.42 million unemployed people, 116,000 fewer than for a year earlier.

The employment rate (the proportion of people aged from 16 to 64 years who were in work) was 75.6%, higher than for a year earlier (74.8%) and the highest since comparable records began in 1971. Overall, there were 32.34 million people in work, 396,000 more than for a year earlier.

Estimates from the ONS showed that average weekly earnings for employees in the UK in nominal terms (that is, not adjusted for price inflation) increased by 2.9% excluding bonuses, and by 2.6% including bonuses, compared with a year earlier. In real terms (that is, adjusted for price inflation) average weekly earnings increased by 0.4% excluding bonuses, but were unchanged including bonuses, compared with a year earlier.

Further data from the ONS showed there were 806,000 job vacancies for February to April 2018, 17,000 more than for a year earlier.

Meanwhile, for the period from January to March 2018, 96,000 people had become redundant in the three months before the Labour Force Survey interviews, little changed compared with a year earlier.

Julia Kermode, Chief Executive of The Freelancer & Contractor Services Association, commented, “As work patterns are changing we are seeing a growth in non-traditional employment that is set to continue and looking at today’s labour market statistics we note that temporary employment has risen.  We have had a tight labour market for some time with skills shortages in a number of sectors, so it is possible that this increase in temporary employment is because employers are unable to source the permanent skills and talent they need. Additionally, 44% of the increase in temporary employment is due to people being temporary as they embark on training, which could include people in apprenticeships.”

Senior ONS statistician Matt Hughes also commented, “The growth in employment is still being driven by UK nationals, with a slight drop over the past year in the number of foreign workers. It’s important to remember, though, that this isn’t a measure of migration.”
“Growth in total pay remains in line with inflation, meaning real earnings are flat on the year,” Hughes said.