Recent economic turbulence set to drive demand for temporary roles

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According to the latest data from Adecco and mysalarychecker.com the recruitment market in the month of July remained somewhat stable, with temporary roles proving the best performers,

With recent turbulence in the economy driving uncertainty among employers, the volume of temporary roles are likely to be maintained or grow as they provide the flexibility that employers are looking for in a cautious market.

Across the whole market, there were over 160,000 vacancies advertised in July – marginally down on the previous two months. While the decline in public sector vacancies has driven the fall in permanent roles, it is the accountancy sector which has shown the greatest decline in temporary positions, although despite this, it still remains a busy sector for jobseekers with one of the highest number of vacancies across both temporary and permanent markets.

Engineering and construction is the only sector to record monthly growth in vacancies across both permanent and temporary roles.

Permanent roles were reported to be down in all sectors in July, except engineering and construction and IT, reflecting the typical seasonal slowdown over the summer months and the continued caution among employers to make permanent hires.

A similar pattern was reported among general staffing roles (manual, administrative and non professional services roles), with a marginal decline in the number of permanent roles across most sectors but a relatively stable temporary market. Banking, insurance and finance continued to create a significantly larger volume of roles than other sectors, followed by the engineering and manufacturing sector.

Steven Kirkpatrick, Managing Director, Adecco – the UK’s largest recruiter, said:

“With the recent headlines causing uncertainty across the market, employers are likely to be approaching any planned new hires with caution, as they wait to see how the next few months pan out. As a result, we would expect to see temporary hires dominate vacancy requirements.

“As employers increasingly rely on temporary staff and the flexibility they afford, the impending Agency Workers Regulations (AWR), which come into effect on the 1st October, are going to become increasingly prevalent. Our latest research still shows that a worrying number of employers are still confused about the implications for their business and it is imperative that those who rely on temporary staff sit up and take action now. If employers start talking to their recruiters early and introduce a few simple steps to ensure they are prepared, there is no need for concern. By working with recruitment agencies and following the Government guidance, companies can easily navigate this new legislation, allowing them to continue benefiting from this valuable element of the workforce.”

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