Contractors currently working in Scotland are facing quite different prospects depending on their sector and contracting disciplines. February 2015’s Bank of Scotland Report on Jobs shows a second month of a soft contract market.
“The dynamics of Scotland’s contract market are quite complex with three key areas of activity that dominate contracting: financial services; video games and oil and gas,” notes ContractorCalculator CEO Dave Chaplin. “The data from February’s report highlights how each of these sectors is faring differently, and provides contractors with some insights into their prospects.”
According to Chaplin, the surge in candidate availability and declining permanent placements in Aberdeen directly reflects the uncertainty in Scotland’s oil and gas sector caused by the oil price crash. This correlates with the virtual flatlining of engineering contractor demand to just about positive territory.
“The outlook for oil and gas contractors is unclear,” he says. “Clients are adopting a variety of strategies to maintain skills resourcing whilst managing costs and risk. Some are pressuring contractors to join the payroll, for both cost reduction and skills hoarding reasons.
“Other clients are reverting to contractors because of the investment uncertainty ahead of the 2015 Budget, during which measures are expected to stimulate more investment in the North Sea. They don’t want the risk of hiring employees.
“In addition, many of the energy majors and services firms have enforced across the board rate cuts. Right now, contractors who can find good contracts in other oil and gas provinces should think seriously about contracting abroad.”
In contrast to Aberdeen’s woes, Dundee experienced a sharp increase in contract rates alongside falling contractor availability, demonstrating that the UK’s video games capital continues to show growth and opportunities for IT contractors.
IT & computing was second in the demand league table during February and, despite slowing demand, growth remained firmly positive.
Edinburgh, Scotland’s financial sector capital, also saw sharp falls in contractor availability but demand for financial and accounting sector contractors was sluggish, certainly compared to the rest of the UK. Unless demand picks up, contractors nearing the end of their contract may wish to consider contract elsewhere in the UK.
Although Scotland saw its labour market softening for a second consecutive month, Bank of Scotland chief economist Donald MacRae remains upbeat: “The number of people appointed to both permanent and temporary jobs rose as did the number of vacancies.
“Starting salaries increased for all types of jobs although the rate of increase eased. These results show businesses with enough confidence to invest for the future and suggest the Scottish economy continues to grow in early 2015.”