Increased number of UK contractor placements in May

Tuesday 9 June 2015

May saw the opportunities presented for limited company contractors within the UK increase, according to a new report. The findings were published in the KPMG and the Recruitment and Employment Confederation's (REC's) Report on Jobs, which is produced every month.

It demonstrates that the rate of contractor billings across the nation increased at a significantly higher rate than it did in April. This does not spell good news for all contractors, however, as a number of regions and industries found themselves with skills shortages and a higher demand for labour than could be supplied.

The situation moving forward appears to show that this situation is unlikely to change. Those with strong skill sets, who continually work to improve their expertise will have no shortage of work, but people wanting to hire them for small amounts of time will be forced to compete with each other.

Nursing, medical and care contractors were the most in demand throughout May, with those in the building industry seeing the least requests. Full-time staff were also most in demand for executive and professional roles.

When it came to looking at pay, the report showed that while the hourly rate for contractors increased over the course of May, it was at the slowest rate since January this year. This trend could also be seen in the starting salaries of permanent workers, which presented a huge contrast from the nine-month record high exhibited in April.

The private sector had the most demand for contractors during May, with the public sector easing off significantly. This was seen in both full-time and temporary positions during the four-week period. London, the Midlands and the south of England in general had the largest number of positions to fill.

Kevin Green, chief executive of the REC, said: "It's imperative that the new government gets to grips with skills shortages because a jobs crisis is looming. Recruiters are doing a great job at getting more and more people into work, but four in ten of those recruiters say that the availability of candidates is getting worse each month.

"Businesses are looking to expand, and roles like marketing, legal and HR are increasingly in demand. This is good news for jobseekers because they can command higher starting salaries as employers compete for talent. But at the same time, shortages are a serious threat to long-term sustainability for organisations within both the private and the public sector."


By Victoria McDonnell

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