Rise in permanent placements but fall in temp billings

The latest Report on Jobs by the Recruitment and Employment Confederation and KPMG has shown that recruitment consultants have reported a rise in permanent staff placements for the third month in succession during March, albeit at a slower pace than February’s nine-month high.

In contrast, agencies’ temporary/contract staff billings decreased. Although moderate, it was the fastest drop in short-term appointments for over two-and-a-half years. Panel members frequently indicated that employers had chosen to convert temp workers into permanent employees due to the effect of Agency Worker Regulations.

The report also revealed that starting salaries awarded to permanent hires were broadly unchanged in March, following a modest decline in February. Temporary/contract staff pay rose modestly, with some respondents highlighting the inflationary impact of Agency Worker Regulations.