Temporary agency labour statistics are further evidence an upturn in the private sector
But firms still remain cautious of committing to permanent staff
FIGURES not included in the Office of National Statistics Labour report show use of temporary staff has increased, indicating the UK is recovering from recession.
According to the number-one procurer of temporary agency labour de Poel, the number of hours worked by temporary employees in the private sector has gone up 35% since January 2009.
The findings suggest private firms are expanding their workforces in preparation for an upturn, seeking alternatives to permanent recruitment and "safe ways" of responding to market growth while the economy remains unstable.
Likewise, the last set of UK labour statistics, which showed the first fall in numbers of unemployed people since the three months to May 2008, were thought to be due to more part-time recruitment.
de Poel emphasised that the figures were consistent with the CIPD's quarterly survey this week, which forecast growing staff numbers in the private sector for the first time since the start of the recession.
de Poel says the overall increase in temporary labour usage is in spite of disruption caused by heavy snowfall this year, though they admit extreme weather conditions reduced growth rates in some sectors.
Chief Executive of de Poel, Matthew Sanders, said: "The increase in temporary agency staff usage across the board confirms that companies are relying heavily on temporary agency labour as a means of guiding them out of the recession.
"When managed properly, temporary agency labour is a safe and efficient means of maintaining a strong skills base and supplementing a workforce that would otherwise be thin on the ground; in turn, guaranteeing business agility and company responsiveness.
"Though we can't be certain that the next labour report (due out Wednesday this week) will continue to reveal falling unemployment figures, everyone knows that 2010 is no time for organisations to be lagging behind their rivals.
He added: "From the smallest to the largest industry players, businesses will need to have a strong, skilled and innovative workforce ready to adapt to a sudden upsurge in the market if they are to achieve competitive advantage."
Interestingly, when broken down by industry sector, the figures reflected variations in temporary labour usage in accordance with different industry trends and priorities.
Whilst usage almost doubled in waste management in line with a shift from landfill to recycling contracts necessitating more employees, it increased just 16% among retailers - heavy snowfall slashing consumer demand.
Meanwhile usage in the logistics sector, which was relatively unaffected by the snow after main transport routes were left open, increased by almost two-thirds (66%) - more than any other industry.
The figures for the transport sector specifically mirrored the findings of the latest CIPS Market report, which revealed the highest level of optimism and confidence in business growth among logistics firms.
The anomaly of the findings was the care sector, where temporary agency labour usage fell 15% this year.
Researchers at de Poel said they weren't surprised by the result, which they believe reflects the unique nature of the care workforce.
Mr Sanders said: "The care sector is unlike any other industry, in that their workforce is already heavily supplemented by temporary agency workers, and usage levels remain much higher than in any other industry.
"It comes as no surprise to us that overall use of temps has fallen as budgets have been tightened - just as other sectors have had to cut back on their permanent staff, care organisations have been forced to reduce the number of temporary agency workers.
He added: "The care sector doesn't have the luxury of turning to temporary agency labour as a means of preparing for an upturn, as temporary agency staff already make up a substantial part of their workforce.
"Our findings are therefore significant in continuing to highlight the problems faced by the care sector and the urgent need for more permanent recruits."
"The de Poel e-tips system has given us an invaluable management information tool that has taken away the mystique of managing agency relationships and has provided the business with a totally transparent process which must be in the interest of all parties.
