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The survey, which questioned 600 employers drawn from across a range industries about their hiring intentions over the next quarter and the next year, found that more than a third (37%) plan to increase their use of temporary agency workers in the next three months. Over half (55%) of those surveyed reported that staffing levels will remain the same and just 8% reported plans to reduce their use of temporary workers in the next quarter.

 

 

The outlook for contractor demand remains stable for the remainder of the year, too. Six in 10 employers reported that they expect to make no change to their use of temporary workers and 34% said they plan to increase the use of agency workers in the next 4 to 12 months. Only 6% of employers said that they plan to make a reduction in the same time frame.

 

 

REC director of policy, Tom Hadley said the latest report mirrors an increase in optimism among businesses.

 

 

‘Businesses are more optimistic about the future than they were 12 months ago and the fact that more than half intend to make additional permanent hires over the next few months reflects that. Employers use agency staff to meet fluctuations in demand and run their businesses efficiently and our latest data shows businesses have no intentions of reducing their use of agency staff for the foreseeable future.’

 

He remarked that the news is particularly encouraging as the second anniversary of the Agency Worker Regulations taking effect approaches: ‘This is encouraging news about the health of the temporary labour market in the UK as we approach the second anniversary of the introduction of the Agency Worker Regulations. It's reassuring to see that the legislation didn't have the negative impact on the temporary labour market that many expected.’