Global IT contractor demand driven by shrinking talent pool
IT contractors are to enjoy greater global demand as a result of growing concerns over skills shortages and a shrinking IT contractor talent pool. The 2016 Harvey Nash Technology Survey notes that the number of available contractors is falling as more firms adopt a ‘skills hoarding’ approach, convincing contingent staff to join their permanent workforce. This is shown by the proportion of survey respondents in the contracting sector falling to 29% in the latest report, marking a 13% decline since 2012. However, with intensified demand as a result of the ongoing talent shortfall and cyber-security fears, contractors have an increasingly varied scope for contract opportunities. More...
Contract market needs government backing: REC Report on Jobs
Contractor demand continued to outstrip availability in February, further intensifying skills shortages. This shows that contractors are set to continue enjoying a contract-rich market, but the latest Report on Jobs from the Recruitment and Employment Confederation (REC) warns of some potential hurdles that could damage the economy and impact contractor demand. “Serious threats are looming just around the corner,” notes REC chief executive Kevin Green, alluding to the March Budget and upcoming tax changes. “The REC calls on the government to avoid further destabilising the UK jobs market.” More...
Contractor demand would benefit from labour market strain caused by Brexit
Contractor demand would intensify if the UK leaves the European Union (EU), but the labour market would also suffer, Staffing Industry reports. This is the warning from James Hick, managing director of ManpowerGroup Solutions, who highlights the problems firms would face replacing skilled migrant workers: “We simply won’t be able to replace overnight the skills these people bring to the UK if they were to leave the EU and our economy would suffer.” According to Manpower’s Employment Outlook Survey, 200,000 roles created in the last year were filled by EU migrants, leaving a skills deficit if a Brexit were to occur. More...
Contractors in London drive sharp rise in HMRC income tax take
Contractors in the south of England have made the largest contribution to the recovery in income tax payments since the recession. Between the 2010/11 and 2013/14 tax years there has been a £13bn increase in tax liabilities UK-wide. Almost two-thirds of this has come from London and the south-east, where income tax per person has risen by 14%, compared with the UK average of 9%. In its analysis, HMRC attributes this to fast-growing self-employment earnings, which have risen by 21% in London, as well as rising income from property. More...
OTS outlines plan to align contractor income tax and NICs
Contractors could soon have their income tax and National Insurance Contributions (NICs) closer aligned, if recommendations from the Office of Tax Simplification (OTS) are put into place. Accountancy Age reports that the Treasury group has advised the Chancellor to move NICs to an annual, cumulative and aggregate basis. It also suggests aligning self-employed contractor NICs with those of employees, as well as improving transparency for the contributions. The OTS notes that alignment would see 7.1m people pay less in terms of NICs contributions, whilst 6.3m would pay more. More...
German contracting trade body celebrates lobbying win over proposals
A contracting trade body has secured a set of revisions to a potentially damaging draft proposal of amendments to the German Labour Leasing Act, reports Staffing Industry. Following discussions with the Association of Professional Staffing Companies (APSCo) Germany, the German Ministry of Labour and Social Affairs (BMAS) has confirmed it has halted its proposal to define externally leased and ‘freelance’ staff from ‘internal’ staff with a deemed employed status. “The success of this campaign has already resulted in positive change and continued action is planned to ensure a good outcome for flexible working,” highlights Tremayne Elson, APSCo Germany managing director. More...
IT sector helps drive contractor demand in Scotland
Contractors benefited from rising demand in Scotland in February, while skills shortages worsened. The February Report on Jobs for Scotland from Markit shows that contractor demand recorded the strongest growth seen since December 2014, with a particular upswing in IT vacancies. Whilst the number of contractor agency billings also continued to rise, it did so at the slowest pace in ten months. Skills shortage concerns were further heightened by the continued decline in contractor availability. More...
MPs call on government to recognise contractors in legislation
Contractors have the backing of a cross-party alliance of MPs who have called on the Chancellor to grant more recognition to the contracting sector. The Recruiter reports that 55 MPs have signed an open letter, penned by contracting trade body PRISM, calling for a wide-ranging strategic review of the legislative framework that governs the contingent workforce. HMRC currently only recognises those who are ‘employed’ and ‘self-employed’, categories that the 1.6m UK contractors don’t accurately fit into. “Our current system fails to adequately recognise and support this important section of the workforce,” notes Labour MP Helen Goodman. More...
Oil and gas tax reform key to continued contract opportunities
Oil and gas stakeholders are calling for tax cuts in the upcoming March Budget to help preserve future contract opportunities and investment. Oil & Gas UK has put forward proposals for tax changes, which include a permanent 20% tax cut, as well as the removal of Petroleum Revenue Tax. “The incentivising effect on investment and production in the long-term should render it of minimal cost to government,” adds Oil & Gas UK economics director Mike Tholen. PwC also backed the proposal, claiming the preservation of jobs and future investment should be weighed against the cost to the Treasury. More...
Irish contract sector boosted by strong demand in IT and construction
The IT and construction sectors provided welcome relief for Ireland’s contractor workforce, which suffered a dip in demand last month. Morgan McKinley’s Irish Employment Monitor for February 2016 shows contract opportunities declining by 11% following an exceptionally strong January. Despite this, IT has been earmarked as a key driver of the contract market, with strong demand fuelled by the burgeoning tech startup sector. The report also notes that construction contract opportunities have risen by 40%, year-on-year, whilst talent shortages in sectors such as engineering and finance look set to drive future contractor demand. More...