Employers face temp worker shortage over busy festive season

Employers should brace themselves for a shortage of temporary agency cover over the busy Christmas period despite rising unemployment levels, according to new research.

A survey of 2,500 recruitment agencies reveals that more than two-thirds (69%) expected a dearth of workers over the festive season.

The logistics industry has the most negative outlook, with 42% of agencies predicting a heavy shortfall of workers, while nearly a quarter (24%) of care sector employers anticipated a shortage of workers.

Manufacturing is also likely to feel the pinch of a lack of temporary staff, according to 14% of agencies in that sector. Elsewhere, the retail and construction industries came out the best with only 8% of those surveyed in the retail sector expecting a shortage and 7% in the construction industry.

The Agency Workers Regulations, which come into force in 2011 and give temporary agency workers the same rights as permanent staff after 12 weeks in a job, should encourage more people to consider temporary agency labour as an alternative to permanent work.

John Philpott, CIPD chief economist, said he was unsurprised by the news: "The CIPD isn't surprised by strong demand for temps at present. Our own surveys suggest this and it's normal at this stage of an economic recovery. But with unemployment still very high a shortage of temps is unexpected, which might suggest that many job seekers still prefer to stick it out in the hope of finding a permanent job."

Last month, Personnel Today reported how a double-dip trend in employment remained a possibility with staff appointments in October increasing at their slowest rate for 14 months.

Source Personnel Today