A SHORTAGE of skilled workers is set to leave firms more reliant on temporary staff in the coming months, according to a new report.

The survey of more than 600 employers showed nearly all were planning to increase or maintain their temporary workforce.

The Recruitment and Employment Confederation, which carried out the report, said the trend is in response to a lack of candidates being available to fill permanent vacancies.

Almost half of firms questioned said they expect a shortage of workers.

Demand for staff in the private sector has risen sharply, while demand for temporary staff in the public sector has dropped slightly.

The health and social care sector has the highest demand for temporary workers, followed by the hotel and catering sector.

One in five business added hiring agency staff would be more expensive than having permanent employees.

Kevin Green, chief executive of the REC, said this could be a “tipping point” for the jobs market.

He said: “Faced with chronic skills shortages, some employers are giving up on trying to fill permanent vacancies.

“For jobseekers this means there are opportunities out there to boost earnings, because employers are prepared to pay a premium for people to fill vacancies on an interim basis.

“For employers there is a growing sense of urgency about the skills shortage because it threatens to throw the UK jobs market off track.”

Konrad Czajka, chairman of Bradford Care Association, said staff recruitment was “in crisis” in private social care.

He said: “We have massively increasing demand, slashed budgets and rising costs, but the biggest challenge we face is the recruitment and retention of staff.

“We take nurses on and train them up, which costs us thousands, only for them to leave for better pay at agencies, who then sell them back to us at higher rates.

“There is absolutely a shortage of skilled workers, not just in the independent sector but also for the NHS.

“Working for an agency pays better and offers more flexible working hours.

“The only way to stop this is by investing enough money into social care to give us a level playing field, and the best way to do that is by having an integrated health and social care system.”