Gulf between temporary and permanent positions widens

A new report reveals that the recent divergence between permanent and temporary staff appointments has continued into the second quarter of 2008.

According to April’s Report on Jobs from the Recruitment and Employment Confederation (REC) and accountancy firm KPMG, permanent placements fell for the second time in three months whilst temporary billings rose at their strongest rate since last November.

REC acting chief executive officer, Helen Reynolds, said the report shows that the labour market remains in a delicate state, although there remains a strong demand for temporary workers.

She went on to say that the figures further highlight the crucial resource that agency work provides for employers, as well as the opportunities that it provides for workers.

In light of this latest research, the REC says that now is not the time to introduce legislation that could severely jeopardise the future of temporary work.

Reynolds said that equal treatment measures between temps and permanent workers would be almost impossible to work out in practice and would add a completely unnecessary layer of bureaucracy for employers and agencies.

This in turn would limit job opportunities for thousands of workers at a time when it is crucial that the labour market is kept ticking in a challenging economy, she added.

KPMG director, Alan Nolan, said the latest figures show clearly that employers are shifting away from hiring permanent staff into a more temporary workforce as a way of dealing with the current economic uncertainty.