Contractor billings reached a 20-month high during November 2012, with growth “beginning to look like an accelerating trend,” according to Recruitment and Employment Confederation (REC) chief executive Kevin Green.
The latest KPMG/REC Report on Jobs also shows that demand for contractors across all the core contracting disciplines grew in November, with the exception of the executive/professional category.
And demand for accounting/financial contractors was in growth territory for the first time this year, suggesting the beleaguered financial sector may be showing signs of recovery.
“Employer confidence is genuinely bouncing back, with businesses feeling more encouraged to hire, which bodes well for the New Year,” continues Green.
“The reductions in corporation tax and investment in big infrastructure projects announced in the Autumn Statement should help boost confidence even higher, and encourage more job creation in 2013.”
Engineering remained in second place in the demand league tables, after nursing and medical care, while IT & computing fell from fifth to seventh place. Recruiters are finding contract engineers, quantity surveyors and IT developers particularly difficult to source.
The shortage of engineering contractors is only likely to get worse if the infrastructure investment boost announced in the Autumn Statement actually turns into real projects.
Whilst public sector permanent recruitment has slumped well into negative territory, contractor hiring has increased marginally for the second month running. Although weak, public sector contractor demand is likely to be sustained as austerity measures continue to take effect, and as public sector organisations try to maintain frontline service delivery without adding to headcount.
KPMG Partner and Head of Business Services Bernard Brown is upbeat about November’s labour force data: “Perhaps the government’s long-term strategy for jobs is beginning to bear fruit? With the latest figures hinting that robust demand in business is offsetting weak demand across the public sector, we might just be seeing signs of resilience.”
However, Brown’s optimism has a sting in its tail, as he warns that any recovery may be short-lived: “The good news must be seen in the context of a fragile economy that remains susceptible to future shocks.
“Recovery is by no means certain and we need a few more months like this to suggest that emerging trends are translating into a sustained period of growth in employment.”