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Employers look to agency staffing in wake of Spending Review

REC JobsOutlook: Employers look to agency staffing in wake of Spending Review

Following last months Comprehensive Spending Review, businesses are looking to increase their use of agency workers, according to the Recruitment and Employment Confederations latest JobsOutlook.

The report - published this week by the REC ahead of the latest unemployment figures has confirmed that employers are likely to turning to temporary staff in both the short-term and longer term rather than employing permanent staff.

Nearly a quarter of employers (22%) said they expect to increase their temporary workforce in the next three months. Twenty eight per cent said they were planning to take on more agency workers over the next 12 months.

However, the number of businesses planning to take on more permanent staff has suffered a setback with 83% indicating that their workforces will stay the same and only 12% expecting them to grow - a two point drop on last month. In the longer term, 73% said their permanent workforce was likely to stay static and with 22 per forecasting it to grow again. a two point drop on last month.

The JobsOutlook survey also shows that 75% of public sector employers now believe the spending review will impact on their businesses compared to 54% last month.

Commenting on the JobsOutlook results, Roger Tweedy, the REC's Director of Research, said: The upward trend in both short and long term use of temporary staff confirms that employers view flexible resourcing options as the best way of gearing themselves up for economic growth. It will be next year that the full impact of the Spending Review will be felt not only by public sector employers but also be private sector businesses who supply into the public sector. As a result, it is not surprising that employers are showing increased caution in terms of hiring permanent staff. Temporary assignments will also provide valuable experience and routes into employment for job-seekers including public sector workers who are looking to make the transition into the private sector.


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