Councils have cut temporary labour usage by 15 per cent in the last year, but the cost of employing temps is rising.

The Comensura Government Index shows councils in the the North East and West Midlands lead the reduction in temporary labour usage.

The North East saw the biggest drop in temporary recruitment at 127 per cent with the West Midlands following close behind at 115.9 per cent.

During the same period there was an increase in pay rates, partly as a result of the implementation of the Agency Worker Regulations. Across the board there was an average 8.9 per cent increase in hourly pay rates.

Young people suffered the greatest effects of reduced spending by councils. In the first quarter of 2012 compared to the same period in 2011, the number of 25-34 year-olds employed on a temporary basis decreased by a significant 35.4 per cent.

Whilst both men and women were affected by the reduction in temporary labour, women faired slightly better and now account for 45.3 per cent of all temporary labour, up from 44.9 in the same period in 2011. This was in part due to a lower than expected reduction in the number of office/admin workers, a job category that accounts for almost 20 per cent of all temporary workers and where women represent 70 per cent of all temporary labour.