The latest Report on jobs from the REC/KPMG suggests that AWR might after all be having an affect on temporary recruitment. If that were to be true, it could be a matter of concern for umbrella company contractors.
Permanent placements increased for the third consecutive month in March, but temporary billings recorded a decrease. Although the decline was moderate, it was the fastest in more than two-and-a-half years. A lot of panel members reported that employers were converting temps into permanent members of staff because of the effects of AWR.
Demand for IT contractors dropped from 53.9 in February to 52.5 last month, but the report says the IT/Computing sector does continue to perform well.
March saw an increased demand for staff, with strong growth in permanent vacancies offsetting the slower rise in temporary contracts. However, growth in candidate availability did not rise to match the demand, which should spell good news for job seekers.
Tom Hadley from the REC said the latest figures were encouraging, but there is still a need to address the skills gap. Employers continue to struggle to find candidates with the requisite skills in catering, driving, engineering and IT and the Government needs to address this lack of supply.
Commenting on the decline in temporary worker appointments he said this could be due to continued uncertainty over AWR, but it could also be because employers are regaining their business confidence. The advantages of flexible staffing arrangements are well known and the outlook for temporary workers is still largely positive.
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