With steadily increasing numbers of employers struggling to recruit the talent they need to grow their businesses, Umbrella Company Employees and other independent professionals in the UK’s contracting community are exceptionally well-placed to capitalise on the improving economic outlook, the latest Economic Analysis from the PCG has concluded.
The impending referendum on Scottish Independence, the intensification of the dispute over the UK’s relationship with the EU and the forthcoming general election in 2015 may contribute to a degree of political uncertainty sufficient to undermine the recovery, however, the report’s author and PCG economist Georgios Nikolaidis warns.
Currently, however, the economic landscape looks decidedly promising for the UK’s professional contracting community. Mr Nikolaidis writes: “The economy continues to be on the right track with another round of positive data coming out in May. Unemployment hit a five-year low while inflation remains below the Bank of England (BoE) target of 2%. With business investment picking up, wages are facing upward pressures and productivity is showing signs of life. Core to this has been the upturn in manufacturing and production in general, which has also helped to narrow the trade deficit.”
The rise in self-employment, Mr Nikolaidis continues, is placing individuals who have chosen this route “at the centre stage of the economical debate”, with pay rates rising as a result of the dwindling availability of staff with the sought-after skills.
The overall picture is encouraging for the UK’s independent professionals, Mr Nikolaidis concludes; however, he urges contractors to monitor developments in the political issues identified above closely, as the possibility that they might destabilise the recovery cannot be discounted.