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UK - Permanent employment to grow while temporary employment remains steady

24 July 2013

The majority of employers (56%) continue to report that they will recruit more permanent employees in the next quarter, according to the Recruitment & Employment Confederation’s (REC) latest JobsOutlook survey. The survey also reveals an increase in the percentage of bosses who foresee headcounts will “stay the same”, particularly in relation to agency staff.

Tom Hadley, director of policy at REC, said: “Businesses are more optimistic about the future than they were 12 months ago and the fact that more than half intend to make additional permanent hires over the next few months reflects that. Employers use agency staff to meet fluctuations in demand and run their businesses efficiently and our latest data shows businesses have no intentions of reducing their use of agency staff for the foreseeable future. This is encouraging news about the health of the temporary labour market in the UK as we approach the second anniversary of the introduction of the Agency Worker Regulations. It's reassuring to see that the legislation didn't have the negative impact on the temporary labour market that many expected.”

July’s JobsOutlook survey of employers reports that:

·         56% plan to increase their permanent workforce over the next three months with 39% predicting no change and only 5% expecting to reduce headcounts.

·         49% plan to increase their permanent headcount over the next four to 12 months, with another 49% predicting no change and only 2% predicting a reduction.

·         37% plan to increase the use of agency workers in the next three months with 55% suggesting staffing levels will remain unchanged and just 8% expect to reduce their use of temporary staff.

·         34% plan to increase the use of agency workers in the next four to 12 months with the 60% predicting no change in their use of temps and only 6% reporting they plan to make a reduction.

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