In light of hiring freezes and the uncertain economic climate, UK corporations are relying more and more on temporary employees, a recent survey revealed. Amid the layoff trend, this is what the UK is resorting to. According to a report released on Wednesday by KPMG and the Recruitment and Employment Confederation, the hiring of permanent staff decreased in April at its fastest rate in more than two years. At the same time, businesses saw the fastest increase in temporary worker billings since September.
Although the number of open positions is still rising, growth is slowing. To deal with rising costs and a gloomy economic outlook, businesses across the UK have put hiring on hold. Neil Carberry, chief executive at REC says that this data depicts how uncertain several employers are feeling lately. “The good news is they still need to hire, as growing vacancies show. But firms are hedging their bets,” he added.
There were indications that more people were joining the candidate pool, though. After steadily declining over the previous two years, the labour supply increased for a second consecutive month. Following layoffs and hiring freezes, the majority of the additional job seekers are searching for permanent positions. A few people are also looking to change jobs in the face of the rising cost of living in order to earn more money. The number of people seeking permanent jobs increased the most in London.
There are encouraging signs regarding the availability of candidates for companies looking to hire. But the market is still dominated by a skills gap that shows no signs of improvement.
