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Working with temps harms your health and wealth. Not only will you suffer anxiety attacks, you'll get paid less too, according to a new report from the National Institute of Economic and Social Research (NIESR).

Temporary workers who come and go as they please drive down the wages of permanent staff by as much as 5pc, the study based on official data claims.

The news is set to inflame tensions between employees and agency contractors at a time when millions of permanent staff are enduring pay freezes and cutbacks.

Not only do temps spoil wage rates, they make you work harder, too, the report said. Companies that use temps are generally more cut-throat and cost-conscious than those who do not – generating more profit for the bosses but making employees work harder as a result, researchers said.

Staff employed directly by the company have lower job satisfaction and higher anxiety when they can spot agency workers throughout the business – even if those temps are working in different departments, NIESR said.

This is despite permanent staff generally getting paid 9pc more on average than temps.

Alex Bryson, report author, said: "Employers face a dilemma. Temporary agency workers seem to have an adverse effect on employees' experiences at work, perhaps due to a more labour-intensive regime, one which is only partly compensated for with higher wages."

Employees' fears may be short-lived, however, with a separate report this week showing fewer companies are hiring temps since the introduction of new rules giving them more workplace rights.

(Read by Brian Salter. Brian Salter is a journalist at the China Daily Website.)

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(Agencies)