New data from the Association of Professional Staffing Companies (APSCo) and staffing industry software firm Bullhorn has revealed how the UK’s skills shortage is seeing employers increasingly turn to contractors in order to remain operational.
Data provided by Bullhorn showed that UK contract roles increased 2 per cent between June and July 2022. Contractor jobs were also up 7 per cent last month compared to July 2021 and up 13 per cent compared to pre-pandemic figures from July 2019.
Permanent vacancies, on the other hand, have seen declines, dropping 1 per cent between June and July 2022 and by 23 per cent compared to July 2019.
UK employers have been increasingly turning to temporary staff to fill gaps during the UK’s ongoing skills shortage. Permanent hiring figures, however, have now dropped for the second consecutive month, fuelling worries that the UK is poised to enter a recession.
Figures have also shown a downward trend in average salaries, with average wages seeing a 7 per cent year-on-year drop. As the UK faces the escalating cost of living crisis, it is likely that the shortage of applications for permanent roles will be further exacerbated, while the reliance on contract workers looks set to continue to increase.
APSCo CEO Ann Swain commented on the findings: “The data is painting a worrying picture for the UK’s permanent recruitment market at a time of continued instability. We are still seeing the impact of the pandemic play out, but to see such significant spikes in contractor recruitment when comparing pre-pandemic levels with today, while permanent jobs decline, highlights that the country’s skills agenda is balancing on a knife’s edge.”
“Companies are faced with no other choice but to turn to contractors to keep business as usual operations running, but for many, that’s not a sustainable approach. With average permanent salaries also dropping despite the cost-of-living crisis, our economic stability is at stake.”
“While we await the decision around a new Prime Minister for the country, my hope is that the successful individual prioritises a solution to the UK’s skills crisis.”
