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UK – Companies paying less for temps despite AWR

12 December 2012

The rates paid for professional, clerical and IT temporary staff in the UK has fallen despite signs of economic recovery and improved employment figures, according to the latest UK IQNdex.

This shows that hourly rates paid by large companies to staffing agencies for temporary jobs dipped 3.3 points in November from the same time last year.  The research also indicates that the anticipated upward pressure on rates resulting from the initial costs of implementing the Agency Worker Regulations appears to have been short lived.

There were bright spots and certain job functions in the IT sector bucked the trend. IT Project Manager assignments experienced the highest increases while Data Analysts and Systems Architects saw an increase of 6%. However, help desk support hourly rates declined -10%.

“Continuing economic uncertainty makes employers less willing to commit to permanent hires,” said John F. Martin, CEO of International Markets for IQNavigator.

“As the economic climate improves, employers will likely shift more of their hiring toward permanent jobs but it also seems likely that increased reliance on part-time and temporary employees will be a more prominent component of the total workforce solution.”

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