'Preference for flexibility' | Temp hiring hits 3-year high as employers shy away from permanent recruitment

UK employers are showing a growing preference for temporary workers over permanent hires as ongoing economic uncertainty continues to shape recruitment decisions, according to the latest KPMG and REC UK Report on Jobs.

The monthly report, compiled by S&P Global from responses from around 400 UK recruitment and employment consultancies, found that temp billings increased at their fastest rate since April 2023 during June. Meanwhile, permanent staff appointments continued to decline, although the pace of that downturn eased considerably compared with May.

Researchers said subdued business confidence, driven by geopolitical uncertainty both in the UK and overseas, had encouraged organisations to prioritise short-term hiring over long-term commitments.

Businesses favour flexibility

The report suggests employers are continuing to adopt a cautious approach to workforce planning, with temporary recruitment helping businesses progress projects without committing to permanent headcount.