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Increased demand for labour to push agency charge rates up?

Posted by admin in Agency, Financial on April 22, 2010

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Aspire Recruitment Group, Sub-Sight’s sister company and largest independent labour supplier in the Midlands & South-East of England have reported a marked increased demand for trades, labour and plant operatives in the final quarter of 2009/10.

After two hard years for the construction industry, the final quarter of 2009/10 has seen demand for construction operatives rapidly increase, with particularly elevated demand for workers associated with groundworks and civil engineering.

Requests for temporary groundworkers and groundworks labourers rose by 56% during this time, closely followed by an increase of 47% in requests for plant and CPCS machine operatives.

This marked increase in demand for labour within these sectors is starting to push up the rates paid to operatives and this, in turn, is sure to have an effect on the rates charged to contractors by agencies.

Laura Kirton, Operations Manager for the Aspire Recruitment Group, comments, “The increase in demand is due, in no small way, to the fact that many housing developers have restarted developments which were shelved during the earlier part of the financial year.”

“However, until the economy is seen to have stabilised, many contractors are reluctant to recruit for permanent staff and so the pool of talent in the temporary market is in demand. This means that we are having to pay people increased rates in order to keep up with our clients’ requirements.”

She continued, “Many labour agencies in the area seem to be experiencing a higher demand for their services in what is traditionally a slow financial period.”

“A promising end to the tax year does not necessarily mean a booming summer but the signals are positive for agencies which, like a large proportion of the construction supply chain, have seen dramatic increases in staff turnover in the last two years.”

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