Thursday, 4 November 2010

Will temporary jobs lead to permanent recovery?

According to the Office of National Statistics, the UK GDP grew by 0.8 per cent in quarter three 2010. Read full report here.

The 0.8 per cent growth stemmed from:
  • Service sector (0.4 per cent)
  • Construction sector (0.2 per cent)
  • Production sector (0.1 per cent)
  • Growth in the Service sector was driven by the ‘business’, ‘health’ and ‘other’ sectors.

During the last two quarters the job market also showed reliance with employment levels growing by 184,000 jobs in quarter two 2010. However, and not widely reported, this masks differing situations between types of workers.

In the three quarters of labour market recovery from the recent recession, quarter three 2009 to quarter two 2010, total employment rose by 0.4 per cent (120,000). This was driven by part-time and temporary workers:

  • Part-time jobs grew by 2.3 per cent (178,000)
  • Full-time jobs fell by 0.3 per cent (59,000)


  • Temporary employees grew by 10.4 per cent (149,000)
  • Permanent employees fell by 0.4 per cent (101,000)

Which raises an important question, if the private sector is to provide the jobs to replace those lost in the public sector, are temporary or part time jobs the answer. A suggestion, we should be removing the barriers that stop the private sector from employing more of its workforce on a permanent basis. Doing so to the benefit of both employee and employer is the challenge

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