Businesses look to short-term staff due to uncertain outlook

UK businesses are shifting to temporary workers amid lingering economic uncertainty and rising costs, shows the latest KPMG and REC jobs report

The demand for short-term staff was signalled by weaker economic conditions and rising costs, as businesses remained cautious when locking into long-term contracts.

According to the report, permanent placements continued to fall for the seventh consecutive month, and at the quickest rate since the start of 2021.

In contrast, temp billings expanded, as UK businesses looked to secure temporary vacancies amid recession fears - the strongest rate of growth seen in more than seven months. 

The rates of starting pay for both permanent and temporary workers did strengthen, with efforts to attract and secure suitably-skilled staff and higher living costs being cited as key drivers of pay growth.

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