Data has shown that demand for contractors in certain key sectors has soared as a result of several converging factors. Driven by the UK economy’s recovery from the COVID-19 pandemic and increasing competition for the services of contractors, demand has risen rapidly in sectors such as construction and IT.
According to recruitment trade body the Recruitment & Employment Confederation (REC), September’s jobs market showed “fierce competition” for both temporary and permanent staff, with contractor demand increasing as a result of labour shortages and the overall number of self-employed workers falling due to IR35.
A recent study found that 56 per cent of UK contractors said they were planning to turn to permanent roles as a result of IR35 legislation, which came into force for private sector businesses in April 2021.
Most opting to leave self-employment were doing so as a result of an expected loss of income due to the new rules, with contractors expecting to lose an average of around £20,000 from their take home pay.
This continuing stream of people leaving the freelance workforce is resulting in an ever-smaller pool of workers for employers in industries like construction to turn to.
In the construction sector, figures from the Office for National Statistics (ONS) showed that vacancies had risen to an all-time high of 43,000 last month, 5,000 more vacancies than in August and the highest since records began 20 years ago.
In the IT sector, the REC said that demand for contractors had fallen slightly from a figure of 70.8 in August, but September’s score remained high at 68.9.
REC CEO Neil Carberry commented: “Businesses’ confidence levels remain robust and that has led to sky-high demand for workers. Demand is still growing for both temporary and permanent staff, but permanent hiring now leads the way after starting its recovery much later than for temps.”
Author: Steven English
15.10.2021
