SJD Accountancy

More UK businesses hiring contractors

Request Callback

The latest Labour Market Outlook report has revealed positive news for freelancers, as it was revealed that a significant amount of UK businesses are increasingly turning to contractors for work.

The recent report, which was carried out by the Chartered Institute of Personnel and Development (CIPD), surveyed more than 1,000 employers and found that 74 per cent of private businesses are choosing to hire contractors and other temporary staff.

If public sector hirers are included, this amount then rises to 78 per cent.  Many of the UK’s firms are turning to freelancers in order to help them complete projects and meet business targets. 

According to the CIPD report, manufacturing and production firms are most likely to hire contractors, as 86 per cent were found to have recruited temporary workers.  An incredible 85 per cent of public sector businesses took on temps in the last quarter.

These findings are very much supported by the latest REC (Recruitment & Employment Confederation) Report on Jobs, which revealed that the demand for contractors rose for the first time in nine months during August. 

However, permanent staff placements continued to fall last month due to the current economic climate and the fact that businesses are hesitant in taking on permanent staff, choosing to instead rely on highly skilled contractors.

REC’s Chief Executive, Kevin Green, commented on the Report on Jobs results, “Recruiters tell us the first rise in the placement of temp workers in nine months is because employers are calling on that flexibility offered by agency staff as a way to grow to meet recent increases in demand, like that seen last month in the service sector.

“It’s also a sign that changes to Agency Worker Regulations last year have not resulted in any significant negative impact on the market for temporary labour as some predicted they would.”

Please visit our Contractor News page for all other news. To discuss this story further visit our SJD Accountancy Blog.

Request a Call Back

We want you to know exactly how our service works and why we need your details. Please read our Privacy Policy before you continue.