Contractor markets gained momentum during August despite the traditional summer slowdown and the predicted disruption on the non-leisure and hospitality sector as a result of the London 2012 Olympic and Paralympic Games.
This is according to three key labour market surveys, which not only show increased contractor demand, but also an improved UK labour market overall:
- IT and engineering contractor demand strengthened, as contract and temp billings increased for the first time in nine months: KPMG/Recruitment and Employment Confederation (REC) Report on Jobs for August
- Construction and property jobs increased by 20% in August compared to June, and the index for IT reached an all-time high: Reed Job Index for August
- Vacancies rose by 5% in London’s financial sector during August for the first time in three years: Morgan McKinley London Employment Monitor for August.
Preliminary results from a fourth survey, the Monster Employment Index for Europe, confirm the UK’s online recruitment sector was back in growth territory in August, both on a month-on-month and year-on-year basis.
Commentators were not expecting this unseasonal improvement in contract and employment prospects: “It is a surprise to see a 5% uplift in jobs in August. With many people traditionally taking a holiday at some point during this month, it is typically the quietest time of the year for hiring in most industry sectors,” notes Hakan Enver of recruiter Morgan McKinley Financial Services.
“In addition, this year we had anticipated that the London 2012 Olympics would cause some disruption to the work environment,” he adds.
Reed.co.uk managing director Martin Warnes agrees: “August is traditionally one of the quietest times of the year for recruitment, so it is highly encouraging that opportunities have continued to grow. Particularly noteworthy has been the increase in opportunities in the construction and property sector.”
“It may be slow, but perhaps we are witnessing the first signs of recovery?” speculates partner and head of business services at KPMG Bernard Brown. “Temporary placements are also on the up, so the hope must be that employer confidence is returning, that they are looking to the long-term and recruiting for growth.”
The UK’s economic growth forecasts have been lowered sharply by the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC) and the Organisation for Economic Cooperation and Development (OECD) in the last fortnight. However, this raft of labour market data, coupled with improved industrial output data, suggests that contractors may start to see momentum in the contracting markets pick up.