Employers turn to temporary workers to fill vacancies as double dip recession bites
A recent survey undertaken by the Association of Professional Staffing Companies (APSCo), has revealed that employers are increasingly turning to the UK’s temporary workers base to fill vacancies, rather than recruiting permanent staff.
And it’s great news for the marketing & media sector, which saw increases not just in temporary placements (up 8% over the last year), but permanent placements, too (up 9% (y/y).
Steven English, Sales and Operations Manager for SmartWork says: “Q1 and Q2 2012 has shown a 25% increase in new starters, compared to the same period in 2011. Recording which sectors our freelancers are working within is important for us to see where our strengths are within those sectors. We have found the most success within the medical & healthcare and creative, media and marketing sectors. Although still prevalent, we are confident the effects of the double dip recession have turned a corner and we can continue concentrating on our successful capture of the flexible labour market and helping freelancers and temporary workers with maximising their pay compliantly and affordably.”
Away from the marketing & media sector temporary job placements across the UK rose by 7% in the last twelve months (y/y), while permanent placements fell 5% (y/y) over the same period.
Here’s the snapshot:
- Temporary placements up 7%, as permanent market falls 5%
- 9% slump in London’s recruitment sector
- Graduate salaries down 18%
While professional-level vacancies continue to fall for both permanent and temporary workers, (down 30% and 19% respectively, year-on-year) actual professional-level placements are only increasing in the temporary sector. The continuing economic uncertainty means that employers are reining in expenditure on permanent employees until the outlook becomes clearer. (see graphs below).
Ann Swain, Chief Executive for APSCo says: “This switch from permanent to temporary recruitment demonstrates how the UK’s professional recruitment market can respond flexibly to changes in the broader UK economy. With the deepest double dip recession in 50 years, and amid on-going uncertainty over the Eurozone, employers’ confidence has taken a real dive. Many have turned to temporary workers in order to maintain their capacity, whilst not yet committing to any longer term increase in their overheads.”
APSCo points out that despite downturn, permanent professional-level recruitment is not yet at the lows seen in the nadir of December 2011. Compared to December 2011, permanent placements are up 25%, with vacancies up 8%.