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High demand and lack of contractor availability results in higher rates of pay

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Contractor demand and rates of pay have increased significantly over the last month, finds a recent report.

Findings from the Recruitment and Employment Confederation (REC) and KPMG report have revealed great news for the UK’s highly skilled contracting sector. 

According to June’s Report on Jobs, there has been a sharp deterioration in contractor availability, with June’s drop the greatest seen since March 1998.  

As a result of this, and the fact that latest vacancy data indicated faster increases in the demand for temporary staff, contractor hourly pay has risen at the sharpest rate since November 2007.

Temporary/contract staff billings also rose at the sharpest pace for five months.

Of the four broad English regions for which data are available, leading the way in terms of temp billings growth was the Midlands followed by the South. 

The North saw a stronger increase in temp billings, but London recorded a slower rate of expansion. 

It was also found that in both the public and private sectors, demand for temporary workers rose at rates that outstripped those seen for permanent staff.  

Engineering workers were the most in-demand type of temporary staff during June followed by blue collar and then construction

According to the REC/KPMG report, demand for temporary staff is rising at stronger rates across all categories when compared to 12 months ago, with the exception of nursing/medical/care.

REC CEO Kevin Green said, “This month sees the number of workers available to fill vacancies plummet to an all-time low, in particular across business development and sales roles that are vital to boosting bottom lines. There are also persistent shortages across IT and engineering, which are becoming a serious threat to economic growth.  

“The message to UK businesses is that it is crucial to sharpen up hiring procedures in an increasingly candidate driven market.  The message to government is that we need to reform the visa system to satisfy immediate demand for skills, whilst stepping up measures to boost the UK skills base for the long-term.” 

Considering making the switch from working as a permanent employee to a contractor? Then read our free downloadable guide to moving from permanent to contracting, you may also find our advantages and disadvantages of a Limited company page useful.

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