PAYE Umbrella professional contractors specialising in IT contracting and in the Medicine/Nursing/Care sector have cause for celebration today, as the latest REC/KPMG Report on Jobs reports strong both in both categories.

Overall, contractors working through Umbrella Companies and other temporary workers had an extraordinarily good month during September, with temporary contract billings hitting a 14-month high after growing for a second consecutive month.

Permanent vacancies also increased, but there were some regional variations. Contractor roles and other temporary vacancies rose most strongly in the Midlands, with both the South and the North also recording modest growth; however, there was a slight decline in London.

Although temporary roles dropped sharply in the public sector, almost certainly because of the impact of government austerity measures, demand for contractors managed to outstrip that for other employees. This suggests that public sector hirers are attempting to maintain capacity and service delivery through contractor appointments while reducing headcounts in line with pre-set targets.

REC chief executive Kevin Green hailed the figures as evidence of the temporary market’s “bouncebackability”, even in the face of a double dip recession. The increased use of temporary workers and contractors could, he suggested, signal a rise in employer confidence, adding: “It certainly puts pay to any idea that changes to Agency Worker Regulations last year dissuaded British businesses from using temps as a vital component of their workforce. Temporary staff are an efficient, flexible way for businesses to increase their workforce and grow their businesses out of recession.”

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