Temporary labour is a key tool for businesses to fill skill and capacity gaps in their organisations, as well as being a strategic vehicle for cost management and quality improvements. While generally more expensive on a unit basis, temporary labour can be used strategically to manage labour costs.
The category is increasingly affected by global shifts, such as regulatory change and movements in political and economic power. This can drive up costs of temporary labour, whether by contractors, agency labour or outsourcing1 making this an important category for businesses to address.
For a holistic view, the wider labour market is factored into the below analysis, as changes in temporary labour often respond to developments in permanent recruitment.