Contractors working for umbrella companies may be interested in the distinctly cool reception given to the recent jobs summit (10th January) by the Chartered Institute for Personnel and Development (CIPD). Prime Minister David Cameron met with business leaders from across the UK earlier this week to discuss the issue of job creation. But according to the CIPD, the policies on offer from Mr. Cameron’s government will have only a “marginal impact” on employment during 2011.
To be fair, the CIPD’s Chief Economic Adviser, John Philpot, welcomed the summit but urged the public policy debate about job creation to focus on an “economic assessment of the determinants of growth and employment.” He went on to say that the UK’s flexible workforce, which of course includes many PAYE Umbrella contractors, has a high level of job creation potential. This reputation was enhanced by the encouraging rate of job creation in the private sector seen last year, he added. However, he maintained that business pledges and policy initiatives are unlikely to have a significant positive impact on employment during 2011.
His comments coincide with the release of the latest “Report on Jobs” from the Recruitment and Employment Confederation (REC) and KPMG. Although the survey revealed that both permanent post temporary vacancies continued to rise during December, the two organisations agreed that the next few months are likely to be “very tough” vis-à-vis employment opportunities, not least because of the impact of the recent VAT rise and public sector cutbacks.