UK Manufacturing Sector Is Likely To Turn To Temporary Recruitment

The Chartered Institute of Purchasing  and Supply’s latest data shows UK industrial production has fallen by 1.5% in the last quarter (March to June) compared to the previous three month period. Also with manufacturing down 0.2%.

According to Chris Williamson, the Director and Chief Economist at Markit, the UK manufacturing sector is likely to start using temporary recruitment; this is due to poor visibility on how the sector is going to fare.

Williamson also stated that: “The rate of growth in manufacturing has cooled very significantly since earlier in the year. We were seeing good payroll growth then. Over the next few months what we are likely to see is firms becoming increasingly reluctant to take on extra staff. Those that they do take on, they will be tempted to take on as temporary or contract workers.”

“Firms are operating under flexible conditions because there is uncertainty about the next 12 months. I think that despite AWR [Agency Workers Regulations] legislation, companies will continue to have workers on short-term contracts and see how the next few months go.”

“There is so little clarity at the moment in terms of both domestic demand that they will be tempted to hold off hiring permanent employees, and if it means using staff for less than three months, then so be it.”

Source Danbro