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UK – Job Puzzle Continues, Firms to Hire More Temporary Workers

30 January 2013

Employers predict jobs growth for 2013 with one in three planning to take on more temporary agency workers this year, according to a new survey from the Recruitment and Employment Confederation (REC).

This also shows that over half of employers are planning to hire more permanent staff in 2013. The survey of 600 employers found that the jobs market is set to continue on a trend of slow growth during 2013.

“At first glance the predicted growth in jobs for 2013 may seem at odds with recent gloomier news about lack of GDP growth,” said REC director of policy, Tom Hadley. The UK economy shrank by 0.3% in the last quarter of 2012.

“There are various factors influencing what’s been termed this ‘jobs puzzle’. The fact that wage inflation remains low is one reason that employers have been able to maintain or increase their workforce,” said Mr Hadley.

“Our latest data indicates that the robust performance of the UK labour looks set to continue. At a time of high profile closures on our high street, it is important to remember that job creation is primarily fuelled by SME businesses.”

The survey found that 55% of employers want to maintain their use of agency workers in the first quarter of 2013 while overall, 92% said they will increase (32%) or maintain (60%) their use of agency workers throughout the entire year. 

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