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Temporary appointments 'don't signal permanent jobs'

24 February 2010

The hiring of temporary staff can no longer be used as a way to predict whether companies will go on to create permanent job vacancies, it has been claimed.

According to a report from the Associated Press, lingering doubts over the robustness of the economic recovery are causing many organisations to continue with temporary appointments.

While this may be good news for interim managers and other freelance specialists, it also means that forecasting developments in the recruitment market has become more difficult.

"I think temporary hiring is less useful a signal than it used to be," chief economist at Wells Fargo John Silvia told the news agency.

"Companies aren't testing the waters by turning to temporary firms," he added.

According to experts, the main obstacle to the creation of more permanent roles is a lack of confidence over the long-term economic outlook.

Tom Hadley, director of external relations at the Recruitment and Employment Confederation, recently explained how many companies are using interims and other temporary staff to fill specialist roles in sectors such as technology, engineering and financial services.

Categories: Commercial


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