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Temp workers benefit in uncertain economic climate
Page 54
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By Louise Cole THE LABOUR market is starting to weaken due to higher demand for temporary staff and fewer permanent jobs on offer than at any point in the past five years, according to the latest report on jobs by KPMG and NTC Economics.
Although the Office for National Statistics shows a taut labour market with a high level of job vacancies, and the lowest number of people claiming benefit since 1975, the KPMG report suggests that these figures will fall away as economic growth slows. Agencies are indicating higher levels of temporary staff, albeit with slightly depressed rates. Consultancies are reporting that there are more candidates available than there have been in the past four-and-a-half years.
The report also reveals a slight growth in permanent places for blue-collar staff — one point up compared to seven points in April 2007.
There was five-point growth in blue-collar temporary staff as employers seek to avoid tax and National Insurance liabilities, as well as protecting themselves against economic uncertainty.