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Temporary Agency Labour Market continues to grow despite impending red tape

Temporary Agency Labour Market continues to grow despite impending red tape

But the outlook is gloomy for the Care Sector following Southern Cross troubles

New data from de Poel, the number one procurer of temporary agency labour, shows the use of temporary agency workers in June has increased a trend that has continued since the beginning of 2011.

The statistics show that the use of temporary agency labour has grown by 18% compared with the same time last year. This comes following the announcement  that the total number of people out of work actually fell, according to the wider ILO measure of unemployment However, the ONS Labour Statistics showed the number of people without jobs and claiming unemployment benefit rose by almost double that expected last month to the highest level since March 2010.

However, the stats show that the care sector is still facing uncertainty, with an 18% decrease in the use of temporary agency labour in the last month. This follows the announcement from care homes provider, Southern Cross that they are to cease trading, therefore the sector is one to watch over the next few months as the future of the care homes remains uncertain.

The overall increase in temporary agency labour comes despite the impending Agency Workers Regulations that will see temporary workers get the same rights as permanent employees after 12 weeks in a role. This is likely to hit businesses financially if the relevant precautions are not taken to prepare for the new legislations.

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Matthew Sanders, CEO of de Poel, comments: “We know that employing temporary agency workers can be a great way to fill skills gaps in the workforce when short term labour is needed. Therefore when business starts to pick up organisations are likely to turn to temporary agency labour to pick up the extra workload.

“The use of temporary agency labour in the care sector however has continued to be in decline. This is a sector that relies heavily on skilled migrant workers and therefore the current cap has had a huge impact on the staff available to fill those roles.”

Key facts

The number of hours worked by temporary agency staff increased by 18.61% in June 2011 compared with June 2010.

Increase in temporary agency labour usage (June 2010- June 2011) by sector:

Waste 25.09%

Retail 15.75%

Business services 56.31%

Logistics 30.57%

Facilities 11.61%

Manufacturing 2.34%

Decreases of temporary agency labour usage by sector:

Care -15.39%

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