Contractor vacancy growth reached a six-year high during October 2013, against a backdrop of the fastest fall in contractor availability since June 2007 and worsening skills shortages.
Despite the shortages, the latest Recruitment and Employment Confederation (REC)/KPMGReport on Jobss shows increased contractor demand across every contracting discipline and in every region.
“This is another month of growth for both temporary and permanent jobs, in all regions, in all sectors and now across both the private and public sectors,” says REC CEO Kevin Green.
However, he warns that skills shortages are not only worsening, but may do wider harm: “The skills shortage shows no signs of abating and although it is starting to drive wages up there is a real danger that it could cause serious damage to future economic growth in the UK.”
The sharp and sustained fall in contractor availability, increased rates of pay and a modest increase in agency billings during October underscore how skills shortages are taking effect.
Engineering topped the demand league table during October, with construction in fourth place and IT & computing just behind in fifth place. Recruiters had difficulty locating engineers and technicians of all types, and business analysts, developers, digital marketers and infrastructure contractors were most sought after in IT.
Interim management contractors languished in the bottom spot at eighth, although well into positive growth territory. This is despite recruiters highlighting that managers and executives are in short supply.
Most notable of the core contracting disciplines is the financial contracting sector, which experienced a sudden surge in demand growth last month, taking it into sixth place. This suggests that the UK’s financial sector may be exhibiting further signs of recovery.
For a fourth consecutive month, public sector demand for contractors outperformed the demand for employees. This suggests that public sector organisations continue to turn to contractors to maintain service levels whilst limiting formal headcount.
Green is upbeat about the future prospects for contractors: “Recruiters are also telling us that the hiring process is starting to pick up speed as employer confidence returns, which should lead to greater fluidity returning to the jobs market.”