Contractors are getting more numerous and some sub-sectors are experiencing renewed demand, despite the underlying weakness of the UK economy. The oil and gas sector is booming and marketing interims are finding that their roles are increasingly strategy-focused and no longer just gap management. Also, based on the evidence presented by PCG and the European Forum of Independent Professionals (EFIP), it seems that contracting has continued to grow across much of Europe.
In this month’s ContractorCalculator Market Report:
- Research commissioned by PCG and the European Forum of Independent Professionals (EFIP) shows that contracting continues to grow despite the economic downturn
- The 17th Aberdeen & Grampian Chamber of Commerce oil and gas survey paints a rosy picture of the UK sector, with increased demand for oil and gas contractors causing skills shortages and rate increases
- The flexible workforce, including contractors, kept firms hiring during the recession, according to the latest Confederation of British Industry (CBI)/Harvey Nash Employment Trends Survey Autumn 2012
- 12% of professional marketers are contractors and freelancers, and interim opportunities are on the increase, according to recruiter EMR’s Salary & Market Trend Report 2012-2013
- Analysis of the 230,614 assignments posted on Freelancer.co.uk during July, August and September 2012 show that software and content creation skills are most in demand.
Contracting continues to grow in Europe despite the economic downturn
Contracting continues to grow despite the ongoing problems in the eurozone and the UK’s sluggish economic performance. Research commissioned by PCG and the European Forum of Independent Professionals (EFIP) shows that contractor numbers have increased throughout the European Union (EU).
European I-Pros: A Study by freelance economist Stéphane Rapelli shows that the number of contractors and freelancers across the EU has increased by 82.1% since 2000, reaching 8.56m in 2011.
PCG highlights the role contractors play in underpinning economic resilience, saying in the report that those nations which experienced the most growth in contracting and freelancing are “also those generally accepted to be dealing better with the economic crisis”.
“Having access to freelancers in an economy provides flexibility, value and minimises risk to businesses,” explains EFIP president and PCG managing director John Brazier. “This is important when times are good; but when times are bad, these factors become the difference between success and failure.”
Oil and gas contractors continue to enjoy rising activity and confidence
Oil and contractor contractors are benefitting from increasing activity and confidence in the UK oil and gas sector, with skills shortages driving up salaries and rates. The 17th Aberdeen & Grampian Chamber of Commerce oil and gas survey shows that “activity and confidence in the sector continues to rise, with a strong demand for employment and increasing investment on the part of both operators and contractors.”
However, the report also highlights that the appetite for renewables and decommissioning work is muted, and the focus of activity in the North Sea sector is “still firmly on oil and gas activity”.
The good news for contractors is that “all operators and 94% of contractors reported increasing pay, average pay increases remained above national averages and 40% reported [positive] changes to terms and conditions”.
Contractor flexibility keeps clients hiring as the UK moves towards a knowledge economy
The flexible workforce, with highly skilled contractors at its heart, has kept the UK’s clients creating new jobs and contracts despite the struggling economy. This is according to the latest Confederation of British Industry (CBI)/Harvey Nash Employment Trends Survey,Seeking a Competitive Edge, which also highlights that job and contract creation is focused in knowledge-intensive areas of the economy.
Thirty-five per cent of firms in the science, hi-tech and IT sectors, industries traditionally associated with core contracting disciplines, predict their workforces will be larger in 12 months time. The survey shows that jobs and contracts growth is likely to be driven by small to medium sized (SME) businesses, as 36% of those small firms participating predict they will hire new staff over the next year.
Crucially for contractors, the report highlights increasing demand for knowledge workers, saying that: “Businesses are targeting their recruitment on professional, technical and managerial roles, highlighting the growing demand for higher-skilled individuals and the shift to a knowledge economy.”
Contractors and freelancers account for 12% of the UK marketing workforce
Contractors and freelancers account for 12% of the UK’s marketing workforce, with finance, banking and insurance the largest consumer of marketing professionals, according to research by recruiter EMR. The research in its Salary & Market Trend Report 2012-2013 shows that 18,500 new marketing jobs were created in the last 12 months.
The associate director of EMR’s temporary and contractors division Rachel Bowman believes that the number of marketing interim opportunities is on the rise: “Clients are once again looking for professional and highly experienced consultants to come in and develop new strategies and initiatives.”
Clients are once again looking for professional and highly experienced consultants to come in and develop new strategies and initiatives
Rachel Bowman, EMR
And uncertainty is working in contractors’ favour, as Bowman explains: “Most of the businesses we talk to are continuing with their growth plans but are being more conservative with their budgets,” she says. “This has resulted in increased demand for temporary and contract individuals.”
Software and content creation dominate demand growth for contractors and freelancers
Contractors and freelancers with software and content creation skills are in greatest demand via online marketplace Freelancer.co.uk. The website’s latest ‘Fast 50’ for the third quarter of 2012 provides an analysis of the 230,614 assignments posted between July and September 2012, placing ‘copy typing’, or capturing content into digital format, in the number one slot with 6,932 assignments posted during the quarter.
Next most in demand by Freelancer.co.uk’s clients were contractors with HTML skills, with 3038 assignments posted, and in third place, with over a thousand assignments posted, was eBay-related projects. Proofreading, graphic design and logo design assignments also featured in the top ten.
“Every industry we can think of is turning into a software business,” explains Freelancer.co.uk chief executive Matt Barrie, “and every job function is increasingly being performed using software tools in the cloud.”