The private sector is now using nearly as many interims as it did before the recession, according to the Interim Management Association.
The IMA commissions a quarterly survey on interim usage in the public and private sectors and in Q2 it found that private sector bodies were responsible for 61% of interim and umbrella company contractor assignments. The strongest sector for high-end interims was banking and finance which accounted for 40% of all private assignments.
The chair of the IMA, Jason Atkinson, said the private sector buoyancy is welcome and shows that companies are using specialist resources in their bid to drive the economic recovery and enable growth. Businesses are showing an increased willingness to take on interims with bespoke skills for gap management and transitional change projects.
Spending cuts have impacted on resources in the public sector but changes have also been made in the framework agreements for interim providers. Those who did not make the grade have seen a reduction in the number of assignments they receive. On the other hand, IMA members who did pass muster are finding that the public sector side of their business is growing.
The latest JobsOutlook from the REC suggests that most employers will maintain their current level of temporary employees for at least the next three months.
61% of employers said they intend to keep the same level of temps, and 22% actually expect to increase the number of agency staff they use in the coming three months. Over the longer term, 86% of employers said they intend to either maintain to increase the amount of temps they use over the coming 12 months.
Whilst the outlook looks good for temporary workers, things aren’t so positive for those looking for a permanent position. Only 53% of employers intend to take on more permanent staff in the next three months, down from 67% last month.
Roger Tweedy, the director of research at the REC, commented on the results saying that a complex picture was now emerging about hiring intentions. The jobs market has suffered from a dip in business and consumer confidence this month. But despite the forthcoming implementation of AWR, employers are still keen to have a flexible workforce while uncertainty remains in the jobs market.
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