BRITAIN — UK companies increased hiring for temporary workers in May while permanent staff hiring decreased. Research from KPMG and the Recruitment and Employment Confederation reported an increase in temporary role offers during May.
The research found permanent staff hiring declined at its highest rate in 10 months in May. The report said political uncertainty in Britain and conflict in the Middle East led businesses to delay permanent headcount increases. The survey found increased redundancies, fewer job opportunities, and concerns regarding job security led to a higher volume of job applicants. The retail sector recorded the largest decrease in permanent job positions among monitored industries.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, said, “With businesses tapping the brakes on permanent hiring in the face of higher costs, the Gulf crisis and new employment red tape, temporary work is making up the gap.” Modest salary increases for entry-level and temporary workers occurred in May compared to April. The nursing, medical, and care sector recorded increased demand for permanent staff.
Jon Holt, an executive at KPMG, said, “Ongoing global and domestic uncertainty is making businesses more cautious and that is increasingly reflected in hiring decisions. While some employers are turning to temporary contracts to retain flexibility, many permanent hiring plans are being delayed or put on hold.” The unemployment rate in the UK reached 5% in the three months ending in March. Official figures indicate that wage growth has decreased. A government-backed report found that more than one million young people are not in employment or education. The research involved a survey of 400 UK recruitment and employment consultancies conducted in mid-May.