By Jonathan London on 10th August 2015

Temporary billings continue to rise despite UK jobs market slowdown

A new report has demonstrated a slowdown in the growth of the UK jobs market over the last month, though opportunities still exist for talented contractors and temporary workers.

The latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs for July 2015 has indicated that temporary and contract staff billings increased again last month, albeit at the least marked pace in 25 months.

Permanent staff placements also continued to rise in July, but once again the rate of growth eased from the highs seen in April to the slowest in over two years.

One of the key issues companies are facing at the moment is a lack of access to suitably skilled candidates. Temporary and contract staff availability decreased on the whole during July, even though the rate of deterioration eased to the slowest in five months, while the drop in permanent candidate numbers was the most pronounced since November last year.

This has had a slight impact on the level of demand for staff, but the REC/KPMG report also indicated that those who are able to secure the jobs available are being well-rewarded. Indeed, pay growth for temporary staff quickened to the fastest pace since April.

Midlands-based agencies registered the fastest growth in temp billings in July, with the slowest increase seen in the south of England.

Responding to the overall slowdown, the report called on the government to do more to support companies that are seeking to bolster their workforce in order to unlock their full potential for growth.

Bernard Brown, partner at KPMG, said: “It is clear we are in the grip of an industry-wide skills shortage, which shows no signs of abating. Businesses are struggling to find the talent they need and this will have long-term implications for their growth plans and potentially impact the wider performance of the UK’s economy.”

Jonathan London Written by Jonathan London

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