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Economy bounces back with 3% increase in temporary employment

Economy bounces back with 3% increase in temporary employment

A new report suggests that there has been a 3% increase in hiring levels across the UK. Although there has been a predicted drop in vacancies in London – activity is 15.5% down on last quarter - all other regions are performing better than in the first half of 2012, which is a positive sign of the UK’s economic recovery. Regions which are faring particularly well include the South West where there has been a 30% increase in available jobs, and the North East which boasts a 25% rise in temporary vacancies since quarter two.

This is according to the UK’s only company dedicated to the provision of temporary and contract staff to organisations in both the private and public sectors, Venn Group. The company has just released the third edition of a quarterly report – The Venn Index - offering an overview of the vacancy levels, average salaries and in demand skills in the UK.

Commerce and Industry

Vacancies within commerce and industry are 15.5% down on last quarter across the UK – and are now at levels similar to early 2012. This was anticipated following what turned out to be a national Olympic effect and the fact that levels are 2% higher than quarter one 2012 is an encouraging sign for the sector.

Throughout London, vacancies within commerce and industry are 58.8% down on quarter two – the influx of trade associated with the Olympic buzz has now subsided and it’s business as usual for the capital once more. Simon Taylor, director of Venn Group’s commerce and industry operations in London says, “Recruitment activity in the capital peaked in quarter two in the run up to the Olympics. But business in London slowed between July and September as decision makers put hiring on hold during the games. Despite this foreseen slowdown, some sectors are bucking the trend. IT is performing well as companies invest in infrastructure, websites and digital marketing to aid future growth. As reported last quarter, we are continuing to see activity around Silicon Roundabout near Old Street. Organisations are setting aside budgets to upgrade front-end systems. This has been prompted by a boom in apps and mobile as companies compete for superior user accessibility”.

Financial Services

Temporary vacancies within financial services are 16.4% down on last quarter and 10% lower than the beginning of this year. This was to be expected and is in line with what the wider financial services market is showing – the UK market is heavily affected by Europe’s volatile position and a drop in confidence can affect the temporary and interim market almost instantly.

Robert McLeod, director of Venn Group’s financial services division says, “In 2012, the sector’s traditional summer lull was magnified by the Olympics as less business decisions were being made. However some areas are still performing well. There has been a focus on more specific contract roles around compliance projects – which organisations are obliged to budget for in line with FSA guidelines. As a result, professionals with solid experience and a good understanding of & lsquo;Know Your Client’ legislation can command good rates as businesses try to secure the best talent”.

Public Sector

As reported in the last edition of the Venn Index, the temporary and interim market within the public sector is enjoying high levels of activity nationwide – in fact public sector vacancies are up 14.3% across the UK. The huge changes within the NHS have prompted a trend in the recruitment of temporary and interim staff to ensure front line services are maintained.

Ross Gilder, Director of Venn’s public sector division in London says, “Although generally temporary employment is 13% down in the capital – the public sector remains buoyant and vacancies are 11% up on quarter two. As a result there is still demand within the NHS as Primary Care Trusts continue to manage the transition to Clinical Commissioning Groups and CFOs, finance managers and accountants are being drafted in to handle the financial side of the switchover.”

Commenting on the results of this report, Robert Bowyer, Director of Venn Group says: “As predicted in the last edition of the Venn Index, the economy is showing positive signs of recovery and temporary employment levels in the UK are once again on the up. Following a lull in quarter two which can be attributed the Olympics and extra bank holidays the economy is back on an upward trajectory. This has been reflected in recent figures released by the Office of National Statistics which show that the country has emerged from double-dip recession after 1% GDP growth last quarter. A trend which we are seeing across all sectors in every region is the fact that IT and digital are performing particularly well. Businesses which cut back on spending when times were tougher are now investing in quality infrastructure to manage increased compliance and improve efficiency, and we expect to see this continue into next year”.


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