As confidence among UK employers continues to rise, so does their appetite for hiring. Temporary and contract staff remain much in demand because they provide a prompt solution to the skills problem and allow companies to operate flexibly. The latest proof of that demand is the April jobs report from Reed, which shows a 16% increase in both temp and contract positions since the start of 2014 as compared to the average growth rate in 2013.
So far this year employers have advertised 88,000 temp positions and 62,000 contract positions
The Reed Job Index stood at 196 in April versus 153 in the same month of 2013. So far this year employers have advertised 88,000 temp positions and 62,000 contract positions.
Considering all new jobs, the latest index puts the year-on-year increase at 28%. Among the best performing sectors were transport & logistics, construction & property and strategy & consultancy, where the respective growth rates were 80.8%, 64.8% and 61.3%.
But the hiring drive has yet to filter into pay rates: the latest Reed Salary Index stands at 97 points compared to a baseline of 100 (as first established in December 2009). The April reading was also below the 2013 and year-to-date averages – 98 and 99 respectively. This is attributed to the fact that salaries are rising at a slower pace than the cost of living.
Looking at the different regions across the UK, it is encouraging to see that each of them recorded year-on-year growth in new vacancies. Wales topped the list with an increase of 36.6%, followed by the North West and the South West with 33% each.