Two thirds of public sector agencies have seen cuts of more than 20% reduction in temporary staff placements compared to three months ago, according to new survey from the Recruitment & Employment Confederation (REC).

The research shows that 37% of cuts have centred on admin and other back-office roles. However, 36% had seen a cut of front line service delivery roles.

Meanwhile, 94% of agencies predict demand for temporary staff to be greatly reduced over the next 12 months.

Kevin Green, REC chief executive, says: “There has been much speculation about what the spending review will mean for jobs. The impact on temporary staff has not been factored in; our survey confirms that they have been the first casualties of the public sector squeeze. This is not just a jobs issue: it is also an issue for how front line services will be delivered in the future.

“The dilemma will be how will schools operate without supply teachers, how do hospitals function without agency nurses and who will look after our elderly?

“Agency costs are being seen as a budget that can easily be cut. The opportunity for public sector employers is that flexible staffing arrangements should form part of cost-effective staffing models. Flexible staffing is part of the solution, not the problem.”