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The Shift to Temporary Workers UK companies are increasingly hiring temporary workers instead of permanent staff because of low confidence in the economy and higher cost pressures, according to a report. Recruitment Trends in May Recruiters reported a strong increase in offers of temporary roles in May, according to new research from KPMG and the Recruitment and Employment Confederation (REC). Temporary roles saw a significant increase. Permanent staff recruitment fell at its quickest rate in 10 months. The Data Analysis The volume of candidates, combined with lower demand for staff and tighter budgets, meant salaries for those starting out in the workforce and temporary workers rose only modestly in May compared with a month earlier. Nursing, medical, and care sector saw higher demand for permanent staff. Retail sector experienced the sharpest drop in permanent job positions. The Impact Analysis Neil Carberry, chief executive of REC, said: “With businesses tapping the brakes on permanent hiring in the face of higher costs, the Gulf crisis and new employment red tape, temporary work is making up the gap.” Jon Holt of KPMG said: “Ongoing global and domestic uncertainty is making businesses more cautious and that is increasingly reflected in hiring decisions. While some employers are turning to temporary contracts to retain flexibility, many permanent hiring plans are being delayed or put on hold.” The Prediction The trend of favoring temporary workers could continue as long as economic uncertainty persists. Business leaders have cautioned that a dramatic fall in entry-level jobs is driving up youth unemployment.