Demand for temporary workers is rising according to the Midland director of the UK’s biggest recruitment company.
But employers are becoming more cautious about taking on permanent staff according to a report by the Recruitment and Employment Confederation (REC) and KPMG.
The study showed a modest rise in permanent placements in May, the slowest growth rate of the last five months, but a surge in temporary hiring in certain sectors including financial services.
The REC’s report looked at data from 400 recruitment and employment consultancies.
Carmen Watson, managing director of Pertemps Network Group (PNG), said: “As the economy continues to slow down, demand for temporary workers is rising, especially in certain sectors such as energy and logistics.
“More and more companies are using temporary staff to help them expand their bandwidth to cater for surges in workload without being saddled with unwanted overheads in fragile economic conditions.
“Some sectors are moving in a counter cyclical trend to the current economic conditions, and are on a more permanent growth path such as technology and logistics and it is entirely possible that many of the temporary staff taken on will become permanent positions.
“Despite high unemployment, there are still many jobs that remain unfilled and provide opportunities for those who broaden their horizons.”
PNG acquired 20 smaller agencies in the past year, creating turnover of £425 million and profit before tax of £10.5 million.
The company has 25,000 people working in temporary positions and around 12,000 in permanent work.
PNG was formed when Pertemps, based in Meriden since the 1960s, bought Manchester’s Network Professional Recruitment in a management buyout worth around £112 million in February.
The MBO brought Pertemps and Network back together after Network split from Pertemps in 2004 to form a separate listed business.
Ms Watson was born in Dudley and lives in Wolverhampton.