Contractor demand in the core contracting disciplines of IT, engineering and construction has been sustained during April. This is despite a fall in overall agency billings and the slowest growth in contractor and temp vacancies since September 2009, reported in April’s KPMG/Recruitment and Employment Confederation (REC) Report on Jobs.
REC Chief Executive Kevin Green suggests the Agency Workers Regulations may be responsible for the general malaise in the contract market: “Temporary staffing is declining as employers take on more permanent staff and come to terms with the Agency Workers Regulations.”
However, KPMG’s Partner and Head of Business Services Bernard Brown singles out the core contracting sectors as good performers: “One ray of sunshine amidst the gloom is the Midlands, where engineering and construction opportunities have grown for the past six months.”
April’s Report on Jobs also revealed that contractor and temp demand is becoming increasingly geographically polarised. Demand for contractors and temps broadly stagnated in the South of England during April, while London registered only a modest rise. The Midlands and the North saw solid expansions, as identified by Brown.
Less positive news for contractors is contained in April’s Monster Employment Index. Not only was the headline index down by 5.5%, but month-on-month online demand for workers was down in IT and engineering in April; 12.5% and 4.7% respectively when compared to March.
Taking the longer-term view, the figures look more positive: year-on-year online demand in IT has grown by 12% and in engineering by 13%, so it is possible that April’s falls in online demand were a blip. Monster UK & Ireland Managing Director Julian Acquari remains upbeat about the sectors: “There is growth across a wide range of sectors including IT [and] engineering.”
He also notes the emerging geographical patterns of growth: “The Midlands continues to exhibit the most growth in the UK. As the UK economy returns to recession it’s not surprising to see London experience a slight decline in online job opportunities.”
REC’s Green remains optimistic about future prospects for contractors: “Employer and consumer confidence are increasing and we anticipate more private sector jobs being created in the second half of the year. [Contractors and] temps will continue to be a valuable resource for many businesses.”