During a great portion of 2008 contractor rates continued to fall. By the last few weeks of the year it was looking like those rates were finally beginning to level out. A report released by the Sanzar Partnership, which provides different types of contractor payroll services, showed that compared to the same period last year the number of new contracts was down by 21 per cent.
The Chief Operating Officer of Sanzar Partnership, Chris Connor, noted that many employers seeking contractors are becoming very sensitive to cost. He suggested that it would be important for contractors to take a close look at their tax liability to see if they could reduce the overall amount. This would allow them to essentially bring home more money without needing to increase the cost of their services in order to secure work.
Connor did add that “Contractor rates have been consistently squeezed as the recession takes a hold and all indications for 2009 are that rates will remain low. It’s far too early for contractors to think about holidays in the sun and hiking their rates back up.”
There are also new reports that suggest the UK could experience job growth despite the downturn in the market that has occurred recently. John Denham, Secretary of State for Innovation, Universities and Skills, said that training is essential to workers. Having the right training is a great way to help ensure the security of your job during difficult economic times.