An analysis of UK jobs market figures by KPMG and REC has shown a significant increase in temporary worker billings over recent months. The UK Report on Jobs covering January 2022 revealed that a candidate shortage for both permanent and temporary roles had increased pay for temporary workers, as well as applying upward pressure on starting salaries.
The report also revealed that hiring activity increased at the start of 2022. According to researchers, the easing of COVID-19 restrictions and the accompanying improvement in market confidence has driven demand for workers at the beginning of the year.
However, despite rising demand, there are a lack of permanent candidates to fill these new positions. Contractor numbers, meanwhile, have been reduced by factors including the impact of COVID-19 and the introduction of IR35 reforms in the private sector in April 2021.
As a result, available freelancers and temporary workers have been able to fill necessary gaps and charge a premium for doing so. This has led to temporary worker billings expanding at their quickest rate since August 2021.
Commenting on the findings, KPMG UK Head of Education, Skills and Productivity Claire Warnes, said: “The new year has seen the jobs market continuing where it left off, with a steep climb in permanent and temporary hiring.”
“It will be important to monitor how these dynamic features of the job market respond to the competing pressures being felt by both businesses and candidates – the desire to make the most of the reduction in COVID restrictions on the one hand; and the understandable concern over the cost of living and inflationary rises on the other.
“Some sectors are continuing to show the strain of high demand for permanent and temporary roles. In particular, the IT and Computing, and Nursing, Healthcare and Medical sectors saw the greatest vacancy increases for yet another month, reflecting the significant workforce and skills challenges which these sectors have faced, and which the pandemic has accelerated.”
Author: Steven English
25.02.2022
