Contractor prospects for 2015 are looking very positive. Expert insights from leading recruiters alongside two forward looking labour market surveys are pointing to a bumper year for contractors across the core contracting disciplines of IT, engineering, construction and finance. Some contractors will have experienced a slowdown in activity in the run up to the Christmas holiday, but this seasonal effect will be shaken off come January when contractor clients are predicted to start aggressive hiring. Contractors seeking lucrative contracts for the year ahead should dust off their CVs and start looking for work.
In this month’s ContractorCalculator Market Report:
- Prospects for contractors across the core contracting disciplines of IT, engineering, construction and finance are looking positive, according to recruiter Hays’ practice leads in those sectors
- The Manpower Employment Outlook Survey (MEOS) shows that hiring levels at the UK’s leading contractor clients are expected to reach a ten-year high as companies start to invest the huge cash pile they generated during the recession
- With 93% of contractor clients currently running at full capacity, the latest Recruitment and Employment Confederation (REC) JobsOutlook shows that contractor demand is set to increase during 2015
- November 2014’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs shows the core contracting disciplines outperforming the rest of the UK labour market, which is experiencing a slowdown at yearend
- Scotland’s labour market activity is slowing, but contracting performance remains strong, says November 2014’s Bank of Scotland Report on Jobs.
Strong prospects for contractors in IT, engineering, construction and finance
Contractors across all the core contracting disciplines, including IT, engineering, construction and finance have strong prospects for 2015. This is according to recruiter Hays’ practice heads in those sectors who are all upbeat about the contract opportunities that are forecast for their areas in the year ahead.
“In 2015 we expect to see more movement in the IT jobs market, as recruitment increases and employees become more confident to move jobs,” highlights Hays Information Technology managing director Lee Chant. “The majority of employers are planning to grow their teams.”
Andrew Bredin, managing director of Hays Construction & Property is equally upbeat about the prospects for construction and engineering contractors: “For professionals at the right point in their careers this year will be a time of great opportunity. Experienced contract professionals remain a crucial resource to take on projects and plug staffing gaps.”
Experienced contract professionals remain a crucial resource to take on projects and plug staffing gaps
Andrew Bredin, Hays Construction & Property
“There was a dramatic pickup in demand for civil and structural engineers in 2014, and the chronic skill shortages in engineering show little sign of fading soon. Opportunities will be plentiful for these professionals in 2015.”
Financial and accounting contractors can also expect strong hiring over the next 12 month, as director of Hays Accountancy & Finance Karen Young explains: “We expect further movement in the finance jobs market in 2015.
“Demand in 2015 is likely to be continued to be driven by changes in legislation and regulation. Business transformation and conversion leads are also in demand as companies who have reported in UK GAAP prepare for IFRS conversion from January 2015.”
Contractor client hiring set to reach ten-year high during 2015
Hiring by contracting’s top clients looks set to reach a ten-year high during 2015. ManpowerGroup’s latest Manpower Employment Outlook Survey for the first quarter of 2015 also shows that energy companies will be leading contractor hiring in the year ahead.
“2014 was a bumper year for jobseekers, with the highest level of job creation in 40 years. 2015 will begin with employers in an even more confident position and we are optimistic about job prospects for the rest of the year,” notes Mark Cahill, ManpowerGroup UK managing director.
“The main catalyst is big business hiring…more of the UK’s largest employers are planning to take on staff than at any point in the last decade. Many big businesses built up large cash reserves in the downturn. Now that confidence is returning they have money to invest in infrastructure and growing their workforces.”
The new nuclear power station at Hinkley Point in Somerset is expected to generate 25,000 new contracts and jobs alone. This is only one of many major investments into energy and infrastructure that are anticipated to result in strong contractor hiring.
Contractor hiring to increase as 93% of contracting clients reach full capacity
Contractor hiring is set to increase during 2015 as November 2015’s JobsOutlook from the Recruitment and Employment Confederation (REC) shows that 93% of contracting clients are running at full capacity.
“With employment levels at an all-time high and the economy strengthening, businesses will find it increasingly difficult to recruit new staff to increase their capacity,” explains REC chief executive Kevin Green. “The priority now is to ensure that employers are able to recruit the talent they need.”
Forty-three percent of contractor clients plan to increase their headcount over the next three months, with 37% planning increases in contractor numbers over the medium term. And contractors continue to contribute much more than capacity management and absence cover, as 80% of clients says they use contractors to ‘gain short-term access to key strategic skills’.
Contractors in core contracting disciplines see sustained demand at yearend
Contractors can expect to see a softening of the market as yearend approaches, but demand is sustained in key skill areas such as IT and engineering.
This is according to November 2014’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs, which also highlights that skills shortages are reaching potentially dangerous levels.
“If there’s a cloud on the horizon for 2015 it’s the intensifying skills shortages which now spans many sectors and is particularly acute in high-skilled areas like engineering, IT and medicine,” warns REC chief executive Kevin Green.
IT & Computing leads the contractor demand league table, with engineering in fourth place after blue collar and secretarial/clerical. Recruitment consultants highlight that contract skills in short supply include all engineering disciplines, as well as technicians.
Contractor demand in Scotland outpaces permanent hires during November
Contractor demand in Scotland outpaced the demand for permanent employees during November 2014. The latest Bank of Scotland Report on Jobs shows that the core contracting disciplines continue to perform well.
IT & computing is second in the demand league table, after nursing/medical/care, showing stronger growth in demand than the previous month. Engineering and construction has moved into second place, as accounts and financial has slipped down two places to fifth place.
Despite the strength of the contract market, Bank of Scotland chief economist Donald MacRae believes that Scotland’s overall labour market growth is slowing: “November's Report on Jobs showed further growth in the number of people appointed to jobs although the pace of increase eased to its lowest level for seven months. These results indicate Scotland's economy growing but slowing.”