Growing number of agency workers in the UK labour force

Statistics from the Resolution Foundation indicate there are 800,000 temporary workers in the UK, with 56% of construction firms having increased their agency worker share over the last 5 years. The study makes good reading for employment businesses as over 85% of companies surveyed either increased or maintained the level of temporary staff within their business during the last 5 years.

The report highlights that the majority of companies use temporary agency workers to fill gaps where there are fluctuations in demand or where a worker is needed at short notice due to holidays/illness.  However, there has also been an increase of companies who use agency workers strategically by using them either extensively or exclusively for certain roles.

To view the full Resolution Foundation report click here.

Aspire Comment

The report is encouraging for agencies as it shows the UK economy’s reliance on temporary labour. However, the largest threat to employment businesses who engage temporary labour comes in the form of potential changes proposed in Government’s response to the Taylor review. 

Government are consulting on numerous proposed changes relating to the engagement of workers that will impact agencies, including;

• Seek detailed evidence in relation to the extent of the abuse of “Swedish Derogation” contracts that allows work-seekers to opt out of equal pay entitlements
• Present legislative plans to ensure all workers receive important information in a clear format when working in more “casual relationship” from day one
• Change the law to improve pay transparency for agency workers (rates of pay and who is paying them)

For a full summary, see our news item.