The volatile business climate has seen many businesses taking more advantage of temporary staff. This provides flexibility in times of uncertainty, and for quoted companies, keeps the headcount down to levels that seem acceptable to shareholders.
For the temporary staffing sector the government’s announcement regarding National Insurance (NI) in the Emergency Budget seems encouraging. The rate at which employers have to start to pay NI will increase by £21 per week, meaning 600,000 employees will no longer need to pay tax. This step to alleviate the NI impact on employers will inevitably boost the jobs market and in-turn the temporary worker market.