Contractors at Lloyds have had their pay rates cut by up to 15 per cent. Contractors who do not agree to the wage cuts will face termination of employment. The recession continues to affect employment as agents report that clients are continuing to interview for positions but failing to actually recruit.
The Centre for Economics and Business Research (CEBR) said that 38,000 IT jobs will be removed from the IT sector by next year. This research shows that IT contractors continue to take risks and can inevitably find themselves in a weak position, even if they have been working on the same project for years. The CEBR stated that between 2008 and 2013 the IT market would suffer a reduction in jobs by around 334,000. It is likely that the IT jobs market will take years to recover to the buoyant levels of 2008 and earlier.
The controversial IR35 rule continues to cause problems for contractors but even with the opportunity of a new government next year there is no clarity on where the Conservative Party stands on this issue. They issued a letter to contractors saying, “Conservatives are concerned about the intentions behind IR35, but we must think carefully about how to resolve this complicated issue. It is not as simple as just abolishing the provisions altogether.”
This seems to suggest that the Conservative Party will spend years discussing and tweaking the IR35 rule only to eventually repeal it anyway. Contractors must wait and see what a change in our country’s leadership may mean for them in the long term.