As the UK Skills Shortage Bites, is Now the Time to be a Contractor?
The annual CBI/Pearson Education and Skills survey published this year characterised the shortage in the skills the UK needs to remain competitive and fuel long-term growth as ‘stubborn’, a position reinforced by what has been a long-running cry among organisations and recruiters for more Science Technology Engineering and Maths (STEM) talent.
The near-future has been portrayed as a bleak one for businesses depending on scarce talent and the recruitment landscape is often portrayed as a battleground, where a ‘war’ for desirable candidates is taking place. But as the UK economy recovers and industries such as construction grow, for employees possessing desirable skills and experience, things have rarely looked rosier. As recently reported in The Telegraph, candidates seeking permanent roles in professional and skilled markets can expect higher salaries on offer, in place to encourage more applications. This, combined with a growing number of people applying for unskilled vacancies, is leading to the rapid development of what consultants have termed a ‘two speed’ labour market.
For contractors, this is definitely good news. Last month, the Recruitment and Employment Confederation (REC) and KPMG’s report on jobs showed that temporary billings increased at a sharp rate, with growth close to the 15-year high seen in August. Existing contractors, freelancers and self-employed individuals in skilled industries have not failed to act on this upturn and high demand, with a candidate-driven market leading to predictions that IT professionals will up rates and be able to demand longer contracts, while being more selective about which projects to undertake. However, the existing contractor base in the UK that services key markets such as construction and IT is insufficient to meet demand, with surveys in both industries revealing that this shortage is among the greatest concerns for employers expecting growth in 2014.
For those enjoying fixed employment that are in the fast lane of this ‘two speed’ jobs market thanks to their skills, competencies and experience, this means there is an unprecedented opportunity to capitalise by becoming a freelancer or contractor. For those considering the move, organisations such as Exchequer make the switch easier than ever, promising to handle potentially thorny issues such as payroll and compliance.
If you are interested in striking out on your own and making the most of the buoyant market, but are unsure whether to remain employed or become a freelancer, contractor or sub-contractor, why not take our short questionnaire to find out?
