TEMPORARY BILLINGS RISE AS EMPLOYERS PRIORITISE FLEXIBLE STAFFING

July's REC and KPMG Report on Jobs points to a labour market that is not booming, but is starting to stabilise.

Temporary billings rose at the fastest rate since April 2023, while permanent placements continued to fall in June, although at the slowest pace in three months. Employers are still cautious, but they are using flexible staffing to keep projects moving, cover pressure points and support business development without locking themselves into the wrong permanent structure too early.

Candidate availability also continued to rise as redundancies and weaker hiring activity brought more people into the market. That gives employers more choice, but it does not remove the need for speed. Better availability only helps if the brief is clear, the shortlist is fast and the decision process is disciplined.

Why it matters

For employers, the message is not simply that temporary recruitment is up. The real point is that workforce planning has split into two tracks.

Permanent hiring still needs care, because weak or rushed appointments are expensive. But operational gaps still have to be covered. Projects, customer work, admin, logistics and site delivery do not wait for market confidence to fully return.

Flexible staffing gives employers a pressure valve, but only if it is managed properly. The businesses that win in this market will not be the ones that wait for perfect conditions. They will be the ones that know which roles need permanent commitment, which roles need temporary cover, and which gaps need filling now before they become delivery failures.

Practical take away

Employers should treat temporary staffing as a planning tool, not a panic button.

Minimum operating standard:

keep a live list of roles that would hurt delivery if left uncovered for more than two weeks;

separate permanent hiring needs from short-term capacity gaps;

prepare role briefs before the gap becomes urgent;

move quickly when strong candidates are available;

review temporary cover regularly so it supports the workforce plan rather than hiding a permanent structure problem.

Sources

REC, Report on Jobs: https://www.rec.uk.com/our-view/reports-jobs

REC/KPMG press release referenced from the Report on Jobs page: https://www.rec.uk.com/our-view/news/press-releases/report-jobs-temp-billings-increase-fastest-rate-over-three-years-permanent-placements-fall-again-may