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UK contractors attracting further investment

Published 8th September 2015

As the UK economy continues to improve after a long period of slow growth, it is IT contractors that could see some of the benefits. With business confidence on the rise, hiring intentions are also growing and enhancing the potential for candidates in the near future.

According to the Recruitment and Employment Confederation’s (REC) monthly JobsOutlook report of 600 employers, close to three-quarters (74 per cent) of UK businesses are considering new hiring staff as 2015 draws to a close. 

For those who have been following UK employment trends, this is well higher than the 62 per cent (May) and 63 per cent (June) recorded over the past months. As these statistics continue to improve, REC chief executive Kevin Green explains skill shortages will start appearing.

“Our data shows that almost all businesses are operating at capacity and want to take on more staff to meet demand, but the reality is that chronic skills shortages are making this difficult,” Mr Green noted in a July 22 media statement.

“For workers the outlook is good. Starting salaries continue to rise as employers compete for talent, and permanent and temporary opportunities are available to those with the required skills and capability.”

Interestingly, 96 per cent of businesses are struggling to accommodate increases in demand, according to REC. This suggests that IT contractors may be in the best position to fill these positions without taking up resources that the business doesn’t have. Considering 99 per cent of agency workers or contractors are paid the same or more than permanent employees, it seems it is a great time to be a contractor in the UK.

Mr Green stated that this fact could change the way businesses recruit.

“With candidates in short supply employers need to think hard about how they attract jobseekers. Longer term, business, government and educators must work together to help alleviate the skills shortages so that candidates are equipped with the skills that employers need,” he said.

ITCRA highlights Australian market

As the UK contracting market is slightly more mature than its Australian counterpart, it is vital to compare the state of each now and again. 

In the Information Technology Contract and Recruitment Association’s (ITCRA) ICT Employment Trends Report for Q2, 89 per cent of all positions are contracted, compared to the 11 per cent permanent. 

ITCRA CEO Julie Mills understands many contractors are also being offered permanent roles – further promoting the concept of contracting in general.

If your business or recruitment agency wants to support your contracting professionals, contact the expert team at Oncore Services today.

UK contractors attracting further