Demand growth for IT and engineering contractors ended 2011 on a high
Demand for IT and engineering contractors continued right up to the end of 2011, according to two key labour market surveys. December’s KPMG/Recruitment and Employment Confederation (REC) Report on Jobs showed demand for engineering and IT contractors in second and fifth place respectively. The Monster Employment Index (MEI) UK recorded year-on-year growth in online demand for engineers at 28% and for IT professionals at 17%. The headline MEI increased in December, whereas the Report on Jobs showed temp billings falling marginally, the first dip since July 2009. More…
Agency Workers Regulations could be about to hit contractors, warns APSCo
Contracting may be about to face the belated impact of the Agency Workers Regulations (AWR) warns the Association of Professional Staffing Companies (APSCo). A recent recruiter survey conducted by APSCo reveals that agents are forecasting a third of their clients will terminate contractors prematurely because of AWR. AWR came into force on 1 October 2011, and now that the first twelve-week qualifying period for equal pay has been reached, APSCo is warning that “thousands of temporary workers and contractors could find themselves laid off this January”. More…
Financial IT contractor prospects dampened in the short term by “subdued” market
Financial IT contractors may suffer dampened prospects in the short-term as hiring falters in London’s financial sector. The Morgan McKinley London Employment Monitor for December shows that there was a 30% drop in vacancies compared to the previous month. This fall is deeper than the lull in activity normally expected due to the holiday period. Morgan McKinley Financial Services COO Andrew Evans blames the eurozone crisis: “Ongoing issues in the eurozone, compounded by turbulence in financial markets, sent shockwaves through financial institutions in Q3 11 and Q4 11, rendering the hiring market very subdued.”
Better medium-term news for IT contractors in finance
Despite December’s job market lows, IT contractors working in the financial sector may have cause for cautious optimism over the medium term, as business volumes in the UK’s financial sector are forecast to reach their highest levels since June 2007 by the end of the first quarter of 2012. The 89th Confederation of British Industry (CBI)/PwC financial services survey also shows a decline in industry confidence and falling employment in the sector, mirroring the results of the London Employment Monitor. Marketing spend is forecast to drop, but investment in IT is expected to increase slightly over the next quarter. The financial sector is one of the largest, and best paying, consumers of IT contractor services. More…
Contractors in the North West can trial HMRC’s alternative dispute resolution (ADR)
Contractors in the North West of England and North Wales who are in dispute with HMRC over the results of compliance checks have the opportunity to trial a new alternative dispute resolution (ADR) service. According to HMRC, ADR will bring on board an independent ‘facilitator’ from HMRC who has no prior involvement with the dispute, and who will attempt to broker a deal. ADR is only available to small to medium sized enterprises (SMEs) where a tax issue is in dispute, but before a decision or assessment has been made. More…
Contractors facing tough first quarter of 2012, but a recession is avoidable
Contractors may find the going tough in the first quarter of 2012, as both the services and manufacturing sectors stagnate; but a full-blown recession in 2012 is avoidable. This is according to the British Chambers of Commerce’s (BCC) latest Quarterly Economic Survey, which blames the eurozone crisis for deteriorating business conditions. However, contractors may see their fortunes improve in the second quarter of 2012 if the BCC’s call for the government to move swiftly and implement measures announced in the Chancellor’s autumn statement is answered with action.
Three bumper contract years forecast for oil and gas contractors
Oil and gas contractors look set to benefit from three more years of record-breaking capital investment and a potential stream of lucrative contracts. Energy industry consultant Wood Mackenzie confirms that 2011 was a record-breaking year for capital investment in the UK’s oil and gas sector, and forecasts this will continue until 2014. The investment in upstream capabilities and development of new fields has been driven by high oil and gas prices, and is despite the ‘windfall tax’ imposed on energy companies by the Chancellor in the 2011 Budget. More…
ARC says the ‘split’ JLJ Services IR35 ruling offers case law developments
The Association of Recruitment Consultants (ARC) says that the IR35 ruling placing contractor John Spencer firstly outside and then inside of IR35 at the same client offers IR35 case law developments. The IR35 indicators of substitution, the intention of the parties and mutuality of obligation were dismissed by the tribunal Judge Howard Nolan. Control is still key and ARC recommends that contractors “may need to seek alternative work to retain their IR35 status”. More…
Prime Minister recognises the vital role SMEs and entrepreneurs play in the UK’s economic recovery
David Cameron highlighted the importance of small to medium sized enterprises (SMEs) and entrepreneurs to the UK’s economic recovery, reports Recruiter. The prime minister was speaking to an audience of business people at a Start-Up Britain meeting in Berkshire last week.