Contractors in increased demand, as wages also rise

Tuesday 12 April 2016

Demand for limited company contractors has increased in the UK over the past few months as businesses attempt to navigate their way through the skills shortage, according to a new report.

The latest employment data from the Association of Professional Staffing Companies (APSCo) and Staffing Industry Analysts shows that the number of vacancies advertised in the UK has increased by two per cent year-on-year, benefiting full-time employees and contractors alike.

In particular, temporary opportunities in the financial services industry have seen a significant boom, rising by 85 per cent over the past 12 months alone. Overall, there has been a seven per cent increase in contractor vacancies during this period.

John Nurthen, executive director of global research at Staffing Industry Analysts, commented: "Given how sensitive temporary demand is to the state of the economy, the decent increase in professional temporary and contract vacancies suggests that the UK economy is still relatively stable, despite the 'cocktail of threats' George Osborne warned about in his latest Budget.

"It should be noted, however, that our data suggests staffing firms have had more difficulty in filling these vacancies since the last quarter of 2015."

With this in mind, contractors should ensure they are being proactive in advertising their skills and seeking out opportunities to show that they can add value to clients and to help navigate them through the skills shortage.

APSCo also found that salaries and pay rates have increased across the board over the past 12 months. Median wages have risen by 5.1 per cent since last spring, but some sectors have seen even larger fluctuations, with salaries rising by 8.9 per cent and 5.7 per cent in the accounting and banking fields respectively.

This means that contractors who can demonstrate skills in areas such as financial services, where there is currently a high demand for contractors, could find themselves benefiting from an increase in earnings, particularly as many clients are happy to offer higher pay rates for access to coveted skills.

Contractors who are unsure how to ensure their taxes and finances are remaining compliant with HMRC legislation once their earnings potentially increase would benefit from the help of a personal accountancy service, such as Brookson's. Contact us today to find out more.

By Victoria McDonnell

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