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Contractor rates of pay rise at fastest pace in seven years

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The recent REC report has revealed great news for UK contractors, showing a significant rise in rates of pay.

The latest Recruitment and Employment Confederation’s (REC) Report on Jobs found that the availability of contractors and other temporary staff is down markedly, which has in turn led to robust pay growth.

According to the findings, contract/temporary staff hourly pay rates rose at the fastest pace since December 2007.

Contractor billings also rose strongly, with the rate of expansion quickening from April’s ten-month low.

Temp billings growth was fastest in the Midlands, followed by the South, with London and the North posting similar robust rates of expansion.

Looking at the different contracting sectors, Blue Collar workers were the most in-demand type of temporary staff, followed by the engineering sector.

REC CEO Kevin Green, commented, “The UK’s jobs boom continues with vacancies increasing as employers look for new workers to meet increasing demand and to replace staff that have been snapped up by competitors. 


“The creation of these jobs, combined with the return of job fluidity, is creating a dynamic labour market. However the big issue remains that employers are finding it hard to find the talent and skills they need, yet ONS figures show that we still have 2.2 million unemployed people in the UK.”

Bernard Brown, Partner and Head of Business Services at KPMG, added, “Trying to fill vacancies in the current climate must feel like wandering through a hall of mirrors for the UK’s employers.  No sooner are they in a position to reflect the improving economy by creating roles and offering tempting salaries, than the search for talent seems to reach a dead end, with candidates either preferring to hide in the shadows or failing to offer the appropriate skills.”

What’s life really like as a contractor? Visit our Life as a Contractor case studies hub for real life stories on working through your own Limited company, taking money out of your Limited company, understanding IR35 and much more.

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