IT and engineering contractor demand outperforming finance and executive/professional
Contractor demand polarised during October 2102 as the IT and engineering sector enjoyed solid increases in vacancies and billings, whereas the market for flexible workers in the accounting and finance and executive/professional sectors contracted sharply. October’s Recruitment and Employment Confederation (REC)/KPMGReport on Jobs shows contract billings and contractor demand increasing, suggesting that a ready supply of appropriately qualified contractors exists to meet client demand. More...
Media contractors in BBC status review, with fears that BBC may stop using freelance model
Over 800 media and entertainment contractors and freelancers working for the BBC have had their contracts reviewed by Deloitte. The BBC has recommended that 131 should be offered employment contracts as a result. The BBC also intends to apply an as yet undefined ‘employment test’ to the remainder of its contractor and freelancer suppliers. In response to the review, PCG managing director John Brazier said, “while it is crucial to ensure everyone, no matter how they choose to work, pays a fair amount of tax, it is concerning if the BBC feels they have been given no option but to stop using a freelance model.”
Contractors replacing employees in the professional jobs market
Contractor hiring is increasing whereas permanent employee recruitment is falling in the professional and associate professional jobs market. That’s the message from the latest jobs data from the Association of Professional Staffing Organisations (APSCo). Its data, which reflects market conditions in the financial services, marketing, engineering and legal services sectors, shows that professional services clients are increasingly relying on contractors. “We’re seeing a very continuous trend in the professional recruitment market towards the hiring of temporary staff in preference to permanent staff,” says APSCo chief executive Ann Swain. “Businesses still don’t have the confidence to make permanent hires when they can use temporary staff instead.” More...
Oil and gas contractors in short supply, driving rate increases
The UK’s oil and gas sector is booming resulting in huge demand for skilled workers, including contractors, that the existing supply can’t fulfil. According to the 17th Aberdeen & Grampian Chamber of Commerce oil and gas survey, the skills shortage is causing pay hikes resulting in permanent staff earning more than twice the UK average. “The potentially very positive future for the industry is clearly illustrated by this survey, which also highlights the considerable challenges of skills shortages and costs,” says Kenny Paton, oil and gas partner at survey sponsor Bond Pearce. More...
Contractors one step closer to a General Anti-Abuse Rule (GAAR)
Contractors are a step closer to being subject to a new General Anti-Abuse Rule (GAAR) following the Treasury’s decision to appoint an interim advisory group. The new group will oversee the creation of guidance on the new rule’s implementation, which the government says will “deter and counter abusive tax avoidance.” The chair of the advisory panel will be recruited in early 2013, and will in turn appoint the advisory panel. The guidance is expected to be published for consultation in December 2012.
Contractors may be subject to new HMRC business record checks campaign
A new business record checks (BRC) campaign by HMRC starts in London and the East of England this month and will move to Wales and the South West in February 2013. HMRC says “Where a visit reveals the customer is keeping inadequate records, HMRC will provide guidance on what the customer needs to do to improve their record keeping.” During its previous campaign in 2011, HMRC threatened to fine businesses failing to keep adequate records.
IT contractor opportunities and threats for 2013 and beyond: Gartner forecast
IT contractors may be facing a combination of both threats and opportunities arising from technology analyst Gartner’s predictions of four dominant futures for IT in the organisation. “We are witnessing the emergence of a new generation of CIOs, one that aims not so much to ‘run’ IT as to ensure that the business achieves strategic value from the use of technology,” explains Gartner vice president John Mahoney. He predicts that contractors will see four futures emerge within the next five years: IT as a global service provider; IT as the ‘engine room’; IT “being” the business; and “Everyone’s IT”. More...
SMEs emerging as a contractor growth market for 2013
Small to medium sized enterprises (SMEs) may become a growth market for contractors during 2013. Data from the latest Confederation of British Industry’s (CBI) Quarterly SME Survey shows orders and confidence falling in the last quarter to October 2013. However, the expectation is that prospects will improve, so contractors will be ideally placed to provide SMEs with additional growth capacity but without the risk of taking on new permanent staff. CBI’s SME Council chair Lucy Armstrong explains: “There are some signs of improving prospects going forward, with firms expecting to increase output slightly in the next three months, and more positive investment intentions.” More...
Two-speed online demand for contractors across Europe
IT and engineering just managed to buck the downwards online contractor demand trend throughout Europe, but contractor demand in sectors such as construction and telecoms is contracting. That’s according to October’s Monster Employment Index Europe, which is showing that even Europe’s normally robust northern periphery countries such as the Netherlands and Sweden are not immune to the eurozone. The UK, Germany and Belgium are the only countries still showing year-on-year growth across the region. More...