The latest JobsOutlook Report from the REC reveals that the number of employers planning to increase their use of Umbrella Company Employees and other temporary/contracting staff over the next three months has climbed again to reach 50%, up two points on last month’s total.

43% of employers intend to expand temporary/contracting headcounts over the coming 12 months.

Overall, the number of hirers intending to expand both permanent and temporary/contracting headcounts to meet rising business demand has grown to more than one-third, after starting the year at one-quarter.

80% of employers plan to hire more permanent staff over the coming three months; however, 20% reported growing concerns about skills shortages in the jobs market and 25% anticipate appreciable shortages over the next 12 months.

An implication, of course, is that a scarcity of suitably-skilled candidates for permanent positions will drive more employers to seek the talent they need from the UK’s professional contracting community.

Kevin Green, the REC’s CEO, said that the latest survey contains the best results since its inception in 2009, evidencing the real impact that economic recovery is having on the jobs market; however, he added: “The labour market is becoming more candidate led and it is vital that businesses look at their hiring processes to ensure that they are fit for purpose and will attract the candidates they are looking to hire. However, skills and talent shortages could jeopardise the recovery. Employers, recruiters and the government need to do more, as this issue is intensifying every month and spreading to new sectors.”

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