Some businesses are dependent on agency staff, it has been claimedBritish companies are still heavily reliant on temporary staff and remain hesitant to boost staffing due to the after-effects of the economic downturn, according to recruitment agency de Poel.

The Guardian has reported that new figures released by the firm suggest that the number of short-term workers plying their trade in the UK reached its highest point for a year last month, with business sentiment still sluggish.

"As business confidence declines, temporary agency workers are being relied upon more heavily to fill skills gaps in the workforce," de Poel chief executive Matthew Sanders told the newspaper.

Recent research carried out by accountants BDO found that the "hype" surrounding looming government spending cuts is further hampering private sector businesses, with many holding back on new initiatives until the full impact becomes clear.

The news came after the TUC claimed that unemployment will take 14 years to return to pre-recession levels if the private sector continues to generate jobs at its current rate.

Posted by Cameron Thomson