According to KMPG & REC there has been a further increase in the demand for contractors across the UK. The shortage of a skilled contractual labour force has been a hot topic over the past few months, even in the up and coming cyclical months of the festive period, demand does not seem to be slowing down.
Agency group REC's monthly survey revealed significantly higher vacancy opportunities across a wide breath of industries in all regions across the UK, with the Midlands presenting a considerably higher level of contractor employment growth, opposed to the South with the slowest growth rates. When looking at sector comparisons KMPG's results indicated the public sector to have a stronger demand for temporary workers, whereas the private sector indicated the opposite.
This brings into question the impact that contractor skills shortages will have on the employment industry. Director of 'The Energy Practice' Dominic Morris, highlighted that smaller companies, with their advantageous ability to be much faster paced are able to recruit skilled contractors before their larger competitors. The lengthy process of being employed by a larger firm means contractors are bogged down with bureaucracy and with the nature of the contractual industry, being so fast paced, freelancers aren't on the market for very long.
The war on talent is not only having an impact on poaching highly skilled contractors but on pay rates. Rates have already been seen to rise in the REC and KMPG monthly survey, with much more scrutiny placed on employers to become more realistic with pay rates.