Increasing numbers of people are taking temporary jobs, such as those occupied by IT contractors, because they are unable to find permanent jobs, it is claimed.

According to analysis from the Institute for Public Policy Research (IPPR), the number of workers filling temporary jobs while they look for permanent positions is up 40 per cent since the recession began.

IPPR co-director Lisa Harker claims that the problem of underemployed workers is just is bad as that of unemployed ones.

Reacting to the figures, the Recruitment & Employment Confederation's (REC) director of external relations Tom Hadley said that it was inevitable that people are moved from permanent to temporary jobs during a recession.

"As the jobs market becomes more fluid, temporary workers will be able to use the experience and contacts gained as a way of progressing within the jobs market and accessing permanent opportunities," he added.