Contractors with technical skills in the key contracting disciplines of IT, engineering and construction are in desperately short supply. Now is an ideal time for employees with those skills to consider taking the leap into contracting.
The latest Recruitment and Employment Confederation (REC) JobsOutlook also shows that 98% of contractor clients plan to hold or increase contractor headcounts in the next three months, and 99% plan to hire more contractors in the next 4-12 months.
“This month’s JobsOutlook gives technical permies considering contracting the confidence of knowing that not only is there an acute shortage of their skills sets now, but this demand is likely to be sustained over the long term,” notes ContractorCalculator CEO Dave Chaplin.
Furthermore, the report confirms that nearly a quarter of contractor clients have identified the technical and engineering sectors as areas where they expect to see a shortage of workers this year.
“Confidence is returning to the market and that businesses are seeking to take advantage of increasing demand,” highlights REC chief executive Kevin Green. “The government…announced new investment in infrastructure and transport initiatives, which is a further sign of the strengthening economy.”
However, Green is less positive about whether UK plc will have the talent capacity to implement infrastructure initiatives. He explains: “Questions remain however about where employers will find the skilled workers to carry out these projects, and to respond to growth. Employers are already reporting talent shortages in key industries like engineering, IT and construction.”
Chaplin believes that contractors are the solution: “The contingent workforce can be mobilised rapidly to accommodate shifts in supply and demand. Contractors can be more productive and motivated to complete projects faster. They are also a mechanism for redistributing skills that are in short supply more efficiently.”
The JobsOutlook also confirms that the proportion of temporary workers, including contractors, who are earning more than they would have been had they been permanent employees is increasing. This is another incentive for employees to switch to contracting.
Now two in five contractor clients (41%) confirm that contract workers are better paid than their permanent counterparts. This has doubled since March 2014, when only 19% of clients said contractors earned more than equivalent employees.