War for talent | Temp hires soar in 2024 as firms face increased competition to fill skills gaps

As competition in the jobs market heightens, there has been a steep increase in businesses hiring temporary staff, freelancers and contractors this past quarter (27% vs 16%. A 69% increase in the proportion of companies).

The latest Hiring Trends Index by Totaljobs, which surveyed over 1,000 HR Decision Markers in the UK, revealed that three in five (59%) businesses are experiencing increased competition to find the right skills, rising to 74% of companies with over 1,000 employees.

These skills shortages have created a notable change in candidate expectations compared to pre-pandemic levels. 75% of employers say that candidates have higher salary and benefit expectations, with 69% claiming that demands for remote working have now created a barrier to filling positions.

As a result, 25% of businesses are investing in AI and training to fill these gaps. Over a third of those taking action (34%) are already using AI to supplement their workforce.