Roger Tweedy, the REC's director of research, said: "The upward trend in both short and long term use of temporary staff confirms that employers view flexible resourcing options as the best way of gearing themselves up for economic growth.
"It will be next year that the full impact of the Spending Review will be felt – not only by public sector employers but also be private sector businesses who supply into the public sector. As a result, it is not surprising that employers are showing increased caution in terms of hiring permanent staff."
The report – Jobs Outlook - is based on a monthly survey of employers with results based on a sample of 600.
The REC is the representative body for the UK’s private recruitment and staffing industry
Earlier this week, consultants de Poel reported that nearly 70% of recruitment agencies are expecting a shortage of temporary agency workers over the Christmas period.