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UK – Temporary employee numbers down 2.5%, employment rate reaches record levels

24 January 2018

The number of temporary employees in the UK fell by 2.5% to a total of 1.57 million in the three-month period from September to November 2017 when compared to the same period a year ago, according to seasonally adjusted figures released by 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.

ONS also published total employment figures for the period from September to November 2017 which showed that there were 32.21 million people in work, 415,000 more than for a year earlier and 102,000 more than for the previous period from June to August 2017.

Meanwhile the UK employment rate was 75.3%, which was higher than for a year earlier (74.5%) and the joint highest since comparable records began in 1971.

The unemployment rate was 4.3%, down from 4.8% a year earlier and the joint lowest since 1975. There were 1.44 million unemployed people, which was little changed compared with June to August 2017 but 160,000 fewer than for a year earlier.

For the period from October to December 2017 there were 810,000 job vacancies, the highest figure since comparable records began in 2001. This was 60,000 more than for a year earlier, and 17,000 more than for July to September 2017.

Meanwhile, average weekly earnings for employees in Great Britain in nominal terms (not adjusted for price inflation) increased by 2.5% including bonuses and by 2.4% excluding bonuses, compared with a year earlier. Average weekly earnings for employees in Great Britain in real terms (adjusted for price inflation) fell by 0.2% including bonuses, and fell by 0.5% excluding bonuses, compared with a year earlier.

Julia Kermode, chief executive of The Freelancer & Contractor Services Association, commented on the temporary employment figures, “The labour market statistics also show a decrease in temporary employment by 31k this quarter and permanent employment increasing by 197k this quarter.  This is likely due to employers providing greater stability to their workforce as we prepare to leave the EU through more permanent roles and reducing temporary roles.”

“However, if the UK’s post-Brexit plans do not provide sufficient clarity in the coming months, then it is likely there will be a further increase in temporary roles as businesses look to implement contingency plans,” Kermode said.

Recruitment & Employment Confederation (REC) chief executive Kevin Green also commented on today’s figures, “Businesses are still planning to hire and there was a record number of vacancies at the end of last year. However, it’s becoming even tougher to find people with the right skills to fill the jobs available, so employers across a range of sectors are desperately searching for candidates – from nurses to baristas to engineers.”

“Employers who want an edge over the competition have to design new ways to attract people, like flexible work patterns. Some may need to go to specialist recruiters to get help sourcing talent in areas where there are very few candidates,” Green said.

Our data shows employers are increasing starting salaries in a bid to get applicants. However, this isn’t translating into broader pay rise for current staff and workers are facing hard times as inflation continues to outstrip pay growth. Employers need to think about salaries and benefits for all of their staff – otherwise employees could be tempted by better offers from rival companies.”