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Public sector and larger businesses creating more contractor roles, finds CIPD

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A new report by the Chartered Institute and Development (CIPD) has found that many UK businesses are looking to contractors.

According to the CIPD’s latest findings, 30% of new roles created by larger companies have been for the contracting market; this figure is 25% among smaller firms.

The report revealed that businesses with 250 or more members of staff are more likely, by 5%, to take on contractors compared to smaller ones.

These results combined with similar reports from the CIPD have suggested that the contracting sector remains fairly stable in the UK, with many businesses across the country looking to take advantage of the highly skilled flexible workforce.

The findings have also revealed that it is the public sector in particular that has more job opportunities for the flexible workforce, with figures showing that 32% of new roles within the public sector were made available to contractors.

The private sector still has a relatively high figure, with 27% of new roles being open specifically for contractors.

With regards to the north/south divide, it seems that the south is the best place for job opportunities, as flexible workers filled 32% of new roles in the area, whereas this figure was just 24% in the north.

The CIPD also found that many UK businesses are looking to cut out the middleman (the recruitment agencies) when it comes to hiring contractors in order to cut costs, with 56% saying that this was the reason behind this decision.

This suggests that more businesses will be looking for contractors to actively approach them for contracts. 

Considering working from home as a contractor? Read our comprehensive contractors guide to company expenses for information on what you can claim when working from home, how expenses affect your tax bill and what is classed as a valid business expense. 

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