A new jobs report has showed that employers are turning to flexible workforces with a decline in permanent placements.
The report from the Recruitment and Employment Confederation and KPMG showed that while permanent places fell for the second time in three months, temp billings rose at the strongest rate since last November.
Alan Nolan, director at KPMG, said the figures showed that employers are shifting into a more temporary workforce as a way of "dealing with the current economic uncertainty and financial crisis".
"Cost reduction is very much on the agenda of employers not only through the reduction of headcount but also through ways of reducing tax and national insurance contributions," he explained.
Mr Nolan added that the trend of shifting away from permanent staff is seen most clearly in the
financial sector where as in the medical, engineering and construction sectors a demand for permanent staff exists because of skill shortages in the areas.
Last month KPMG won the
Auditor of the Year award in the Big 4 category at the Real FDI/CBI Finance Directors' Excellence Award. It won the award jointly with Ernst and Young.
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