Online demand growth in the core contracting disciplines of IT and engineering was broadly stable in July. In contrast, public sector, defence and community hiring was the top performing sector for year-on-year growth, driven by increased demand for part-time and voluntary positions.
This is according to July’s Monster Employment Index, which also shows year-on-year falls in online demand for contractors across the construction (-12%), marketing (-12%) and management and consulting (-6%) sectors.
The headline index of online worker demand also declined by 3% year-on-year, registering what Monster describes as the “first overall negative growth trend in 30 months”.
Monster UK & Ireland managing director Julian Acquari blames a sharply contracting financial sector and ongoing eurozone woes for the poor online performance of the UK’s labour market: “The eurozone debt crisis continues to affect companies’ recruitment plans [but] there are still positive signs for a few select sectors.
“However,” he continues, “these pockets of growth are currently counterbalanced by declines in the banking, marketing and construction industries.”
The 13% year-on-year fall in online demand across banking, finance and insurance – the worst performing sector in July – will indirectly impact negatively on financial IT contractor prospects, as the UK’s financial sector is one of the largest consumers of IT contractors.
The Midlands was the only region to register positive online demand for contractors, but this was barely in growth territory at 1%. In contrast, contractors in Wales may be finding it tough to secure fresh contracts as contractor demand fell for the seventh consecutive month.
The renaissance in public sector hiring may offer contract opportunities, particularly as contractors are hired to maintain service delivery standards whilst public bodies maintain or reduce the headcount of permanent employees.
However, contractors considering applying for public sector contracts should beware of the off-payroll rules coming into force in government departments and other public sector bodies, such as the NHS, from September 2012.
Seasonal factors are likely to be impacting negatively on contractor demand, and there may be glimmers of hope, says Acquari, who concludes: “Once the seasonal stagnation over the summer months subsides, we may see [poorly performing sectors] start to turn.”