Contractor demand continued to increase throughout the UK and across all core contracting disciplines during August and September 2014. The short supply of contractors is being worsened by clients hiring flexible worker to fill talent gaps because there are not enough suitably skilled employees available. Furthermore, forward looking reports by the Recruitment and Employment Confederation (REC) and Nigel Wright Energy suggest that demand growth is unlikely to slow down. All of this is great news for contractors, but less positive for UK plc.
In this month’s ContractorCalculator Market Report:
- Contractor vacancy growth reaches a 16-year high, driven by growth in the English regions, according to the latest Recruitment and Employment Confederation (REC)/KPMG Report on Jobs
- September’s Recruitment and Employment Confederation (REC) JobsOutlook shows that contracting clients are increasingly using contractors to fill the talent gaps that are emerging as there are not enough suitably qualified employees available
- The availability of engineering and construction contracts in Scotland surged during August, offering opportunities for contractors across the UK, says the Bank of Scotland Report on Jobs
- A new survey by Morgan McKinley highlights that financial sector contractors are expected to work long hours by their clients, but benefit from flexible working conditions in return
- Contractor hiring increases in the oil and gas sector are forecast to continue over the next 12 months, says the 2014 edition of the Nigel Wright Energy UK Oil and Gas Salary Survey.
Contractor vacancies grow at the fastest rate since May 1998
Contractor vacancy growth reached a 16-year high during August 2014, driven by increased recruitment in the English regions. In contrast, August 2014’s Recruitment and Employment Confederation (REC)/KPMG Report on Jobs shows that hiring in London’s financial sector fell, believed to be as a result of the summer slowdown. This suggests that contractors may wish to look outside of the capital for well-paid contracts.
“The jobs market is often criticised for being London-centric but our data shows that rates of growth for both permanent starting salaries and temp pay rates are faster in the South, Midlands and North this month,” explains REC CEO Kevin Green. “Recruiters tell us that the driver behind this increase is the competition to attract and retain the skilled people outside London.”
Green suggests that contractor prospects are looking positive, particularly in the core contracting disciplines: “It’s more great news for people looking for work this month, as we see more people being placed into jobs across all regions and sectors including construction, IT and engineering.”
Contractors making up shortfalls in employee availability to fill skills gaps
Client organisations are turning to the UK’s flexible workforce to fill strategic skills gaps because there are not enough suitably qualified permanent employees available. Contracting clients are also finding that technical and engineering contractors are hardest to source.
It's clear that skills shortages are affecting the way in which employers use agency workers and increasing numbers are now relying on temporary staff to provide short-term access to strategic skills
Kevin Green, REC
This is according to September’s Recruitment and Employment Confederation (REC) JobsOutlook, which also suggests that this focus on hiring contractors for their strategic skills is likely to impact on the dynamics of contractor skills profiles required and contract lengths.
“It’s clear that skills shortages are affecting the way in which employers use agency workers and increasing numbers are now relying on temporary staff to provide short-term access to strategic skills,” notes REC CEO Kevin Green.
Engineering and construction contract availability rises sharply in Scotland
Engineering and construction contract opportunities in Scotland increased sharply during August 2014. Contractors based in Scotland also experienced increased pay, and their availability fell for the fifteenth consecutive month, and at a faster pace than the rest of the UK.
These results from the latest Bank of Scotland Report on Jobs suggest that engineering and construction contractors from across the UK could find Scotland offers lucrative contract opportunities. European oil and gas capital Aberdeen saw the largest rise in both contract and permanent recruitment during the month.
ContractorCalculator CEO Dave Chaplin believes this signals a renaissance for the sector: “During July, we saw activity in the oil and gas sector accelerate after months of stagnation. These latest figures suggest that the industry is continuing to invest in hiring both contractors and employees.”
Financial sector contractors work long hours in exchange for flexible conditions
Contractors working in London’s financial sector are expected to regularly work over their contracted hours. Most contractors feel obligated to work these extra hours and believe they remain highly productive during the extra time they put in.
A new survey of financial contractors by recruiter Morgan McKinley shows that contracted hours mostly vary between 22 and 42 hours per week, but 76.5% of contractors work more than their contracted hours.
“The statistics show that a culture of long working hours is still inherent in the City, even among contractors,” notes Morgan McKinley operations director Hakan Enver. “However, it’s interesting that a high proportion of contractors report that they believe the extra hours worked are productive.”
Oil and gas contractor hiring and rate rises to increase over the next 12 months
The UK’s oil and gas sector remains buoyant, with clients and employers predicted to increase their contractor and employee headcounts over the next 12 months. This is according to the 2014 edition of the Nigel Wright Energy UK Oil and Gas Salary Survey, which also highlights that average remuneration is £80,000 a year.
“There continues to be real optimism in the oil and gas industry, with most businesses expecting to increase permanent and contractor staffing levels in the next 12 months,” explains Nigel Wright Energy’s associate director Andrew Mears. “Consequently, average salaries and overall benefits packages have continued to rise.”
The demographics of the UK’s oil and gas sector remains heavily dominated by male workers, representing 88% of the workforce, and the industry is ageing, with the average age standing at 45 years. Over half, 57%, are educated to degree level and a fifth hold a professional qualification.