Demand for contractors polarised sharply during October. IT and engineering contractor demand increased solidly, yet for contractors in the executive/professional and accounting/financial categories it contracted sharply.
This is according to the latest Recruitment and Employment Confederation (REC)/KPMG Report on Jobs, which REC’s Kevin Green describes as “exciting news from the labour market.
“The sharpest rise in job vacancies in over a year shows employers are confident about their own businesses and, as they deal with increasing demand, are driving the momentum for more people finding work,” he adds.
The IT contracting sector remains in fifth place in the league table with demand growth below that of a year ago, when it held third place. Engineering has consistently held onto its place in the top one or two, exchanging places with nursing and medical care, which has experienced nothing like the contraction during the recession that other sectors have undergone.
The ongoing decline of the executive/professional and accounting/financial categories may be a reflection of the ongoing contraction and consolidation of the UK’s financial services sector. This decline may also explain why IT contractor contract vacancies are falling short of previous year’s highs.
And despite the recently introduced off-payroll rules, enthusiasm for contractors by public sector clients increased in October, as the number of new assignments was back in positive territory for the first time in 11 months.
Both contract billings and contractor demand increased, suggesting that a ready supply of appropriately qualified contractors exists to meet client demand. Overall demand for contractors across all sectors rose to a 16-month high. Recruiters ascribe these month-on-month demand increases to contractor clients themselves winning new work.
Green’s view is that clients are increasingly recognising that contractors are the solution to managing risk during uncertain times. “We’ve now seen rises in the number of workers placed into temporary jobs for three months in a row, he explains.
“This is a sure sign British bosses understand the business case for using a flexible workforce to handle fluctuating demand and costs effectively. More people engaging in flexible work is a trend that’s going to increase in our post-recession economy.”