Rise in temporary employment suggests employers pressing pause on long-term workforce investment

Responding to today’s ONS labour market figures, James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, comments:

“While vacancies have risen slightly, unemployment and redundancies remain stubbornly high, highlighting the pressures that employers are facing in a tough economic environment. 

“This is also reflected in the rise in temporary employment, now at its highest level since mid-2023, suggesting that employers are holding back on long-term investment in their workforce in light of ongoing uncertainty and concerns about the increased costs that the Employment Rights Act will bring. 

“It’s crucial that the Government continues to consult with employers to ensure that measures still to be finalised in secondary legislation don’t add further cost and complexity to recruitment and discourage permanent job creation.”